The general decline has been widespread across all markets and assets this week. Bitcoin and crypto markets, which have been trending downward in recent weeks, have fallen again this week, and gold and silver, which hit record highs last week, have also fallen.
While a number of macroeconomic factors are believed to have contributed to the decline, Singapore-based analysis firm QCP Capital cited Kevin Warsh, the announced candidate for Fed chairman, as the reason for the decline.
According to QCP analysts: $BTC The stock price fell below $80,000 after Kevin Warsh was announced as the next Fed chairman, causing a significant deleveraging.
Analysts said Mr. Warsh’s appointment was interpreted by the market as a harbinger of more monetary tightening.
$BTC Ethereum (ETH) briefly fell below $74,500 and then below $2,170, with over $2.5 billion of long leveraged positions liquidated.
All of this increases downward pressure on prices, further depressing market sentiment that was already tense due to continued ETF outflows. $BTC This marked the fourth consecutive month of decline.
Has Bitcoin bottomed out?
Bitcoin’s fall to the $74,000 level is interpreted on the one hand as a signal of entering a bear market, and on the other hand as a bottom has been reached.
QCP Capital said the $74,500 level is considered a technically important point as it coincides with the 2025 low.
However, options markets remain cautious. There are more put options than call options, but there is no sense of panic.
The current decline in hedging demand may indicate that investors are starting to build positions in anticipation of a local bottom.
However, despite all the data, momentum is still trending downwards and upside movement is limited around recent resistance levels, leaving the market exposed to further liquidation-driven action.
Analysts concluded that $74,000 and $80,000 stand out as two important levels to watch in the short term.
“A sustained close below the $74,000 support level increases the risk of further decline and could push prices back into the 2024 trading range.”
Conversely, a decisive return above the 80,000 level could provide short-term comfort and allow options to normalize as volatility decreases and downside risk is repriced. ”
Analysts say institutional inflows from spot ETFs and moderate comments from the Fed and presidential candidate Warsh will determine the near-term direction.
*This is not investment advice.
