The major cryptocurrency Bitcoin (BTC) has dropped to the $100,000 level due to tensions between US President Donald Trump and Tesla CEO Elon Musk.
However, after the water between the cards and masks settles, the BTC holds the $105,000 level and is consolidating within a certain range.
Despite tensions, expectations for an increase continue, but analysts said Bitcoin holds at a certain level but is structurally unstable and vulnerable.
Hashkey Eco Labs CEO Kay Lu said BTC is currently trading in sensitive areas with vital support. Lu pointed out that it’s only needed one bearish news event for Bitcoin to crash suddenly and cause panic sales.
Dominick John, an analyst at Kronos Research at Crypto Trading Firm, said the market is in the mood for waiting.
Noting that the Crypto Fear and Greed Index is at 55, John added that macro-trigger events or possible uptrends should be checked for the upward trend.
At this point, he said the US Consumer Price Index (CPI) and Producer Price Index (PPI), which are scheduled to be released this week, will determine the short-term direction for Bitcoin and altcoin.
Finally, Presto Research analyst Min Jung said that the short-term volatility of Bitcoin and Altcoins will be shaped in response to the future macroeconomic developments.
“We were able to improve volatility in the middle of the week. The rise in data on both CPI and PPI calendars and inflation can affect general risk assets, including crypto.”
*This is not investment advice.
