Despite Monday’s sharp reversal, Bitcoin’s long-term price outlook remains technically positive, with durable ETF flows offsetting short-term volatility, according to some analysts.
According to , the top cryptocurrency has remained stable around $92,000, changing little over a 24-hour period. CoinGecko data. recovery continues monday salecaused by escalating trade tensions between the United States and Europe, resulted in more than $865 million in liquidations.
According to Tuesday’s report, “The market recovered relatively quickly as Bitcoin stepped into this range, suggesting strong underlying bidding and much of this macro noise being priced in.” report From digital asset investment company ZeroCap.
Analysts at the firm likened the current setup to an “initial risk-on rotation,” noting that strong structural flows from spot Bitcoin exchange-traded funds have proven more durable than short-term positioning.
Last week’s ETF net flow was highest level among the three Other analysts remain uncertain.
Sean Dawson, head of research at on-chain options platform Derive, also said: decryption.
“Short-term volatility is going to dominate,” Dawson said, pointing to the downward trend in the 25-delta skew as evidence that investors are buying more puts to protect the downside.
High volatility standard
Still, investors should pay careful attention to three macroeconomic and geopolitical catalysts that could sustain high volatility in crypto markets and broader financial markets.
This includes the escalating trade dispute between the United States and Europe over Greenland. delay A Supreme Court ruling on the regulatory clarity of the CLARITY Act and the legality of President Donald Trump’s global tariff policies is pending.
The Greenland conflict escalated on Monday after President Trump sent a text message to Norwegian Prime Minister Jonas Gare Stoer.
shop Confirmed In that exchange, he said he and Finland’s president sent a message to Trump urging de-escalation. The prime minister reaffirmed Norway’s position that Greenland belongs to Denmark and reaffirmed its support for NATO, which he said was “taking steps” to strengthen security in the Arctic.
“Regarding the Nobel Peace Prize, I have made it clear to everyone, including President Trump, that, as is well known, the prize is awarded by the independent Nobel Committee, not by the Norwegian government,” Store said.
President Trump has repeatedly claimed that his foreign policy efforts deserve the Nobel Peace Prize and has publicly expressed frustration that the award did not recognize his role in past diplomatic agreements.
As a result, the president has stepped up his stance in recent weeks to assert U.S. control over Denmark’s semi-autonomous territory of Greenland, saying the U.S. would get the Arctic island “one way or another.”
It also threatened to impose tariffs of up to 25% on goods imported from the country starting February 1 unless several European countries drop their opposition.
“Historically, the threat of tariffs and retaliatory measures have created significant headwinds for digital assets and other risk assets,” said Farzam Ehsani, CEO of crypto trading platform VALR. decryption In a statement. “Markets are now pricing in the possibility that a prolonged escalation could disrupt existing trade agreements, strain international relations, and put further pressure on risk assets.Early signs of on-chain stabilization do not offset the macro headwinds facing digital assets.”
