Weakening cryptocurrency market momentum coupled with ongoing geopolitical tensions continue to disrupt Bitcoin’s price trajectory, driving prices lower. with BTC price and sentiment fall In particular, markets appear to have entered a phase of heightened uncertainty and caution as investors seek alternative assets to hedge geopolitical risks.
Bitcoin weakness reflects widespread risk aversion.
Bitcoin still maintains a downward trajectory. This is because prices are trading below $70,000 due to geopolitical tensions around the world. Depending on the unfavorable situation for Bitcoin and the sector, the market is now at a critical moment where the downtrend could reverse or continue.
Walter Bloomberg shared that Bitcoin Cryptocurrency prices on Nasdaq futures are falling as geopolitical risks fuel risk-off trading. These synchronous declines indicate that market behavior across asset classes is once again being driven by macro variables such as changes in interest rate expectations and generalized risk aversion.
Bitcoin fell about 1.7% to around $67,000 ahead of the US Open, tracking weakness in stock futures, according to the report. Meanwhile, Nasdaq 100 futures fell 0.9% and S&P 500 contracts fell 0.6%.
These developments have influenced investor sentiment and focus. Investors are now becoming more cautious due to heightened tensions over Iran, new discussions about the broader economic impact of AI, and uncertainty about its potential. Fed interest rate cut It follows the latest inflation data.
Even amid geopolitical tensions, the flow of exchange-traded funds (ETFs) in particular remained negative. The US-listed Bitcoin ETF recorded outflows for the fourth week in a row. More than $360 million was withdrawn last week alone.. These outflows indicate weakening sentiment, as evidenced by CryptoQuant’s Fear and Greed Index, which ranks at 10, which would classify it as extreme fear.
While the market is shifting towards extreme fear levels, analysts believe that BTC could consider $60,000 as a major support, prolonging its ongoing consolidation phase. However, additional macro shocks are expected to push the BTC price back towards the $50,000 threshold.
Which BTC Investors Are Stressed?
During increasing bearish phases, investor behavior and activity is critical to gauging the current market state and where to go next. at Recent AnalysisAnil, an on-chain researcher and investor, explained the key differences between short-term and long-term Bitcoin holders.
Looking at the current situation in the market, BTC Short Term Holders You are going through a period of stress due to surrender. Meanwhile, long-term Bitcoin holders have not yet experienced any real stress or surrender process.
What’s worth noting is long term holder Ultimately, each cycle goes through a capitulation phase, and after a certain period of accumulation, a new upward trend begins. But again, it is difficult to judge whether the group will surrender. When this happens, Anil pointed out that the area below 1 on the LTH Unrealized Profit/Loss Ratio chart will be a decisive point for the market.
Featured image from Pixabay, chart from Tradingview.com
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