Bitcoin experienced one of its largest declines in the past year, attributed to economic uncertainty in the U.S. and growing fears of inflation and unemployment.
Economic Uncertainty in the U.S. Shakes Bitcoin
Recent economic data from the U.S. indicates persistent inflationary pressures, driving investors away from riskier assets. The uncertainty surrounding the Federal Reserve's interest rate policies also contributes to market participants' cautious approach. Rising bond yields have led institutional investors to reduce their exposure to cryptocurrencies, decreasing Bitcoin’s liquidity.
Miners’ Accumulation Strategy
Despite the price drop, Bitcoin miners have garnered attention by accumulating reserves of 1.8 million BTC over the last two weeks. This long-term positioning strategy helps balance the selling volume and maintain support levels.
Technical Analysis and Possible Scenarios
Technical analysis suggests that if Bitcoin cannot breach the $87,678 resistance, it may drop to the $80,000 level. In addition to miners’ accumulations, interest from buyers below the $82,000 level supports the expectation of a limited decline. However, macroeconomic data and mining activity will largely determine Bitcoin’s short-term trajectory, with a deeper decline still possible.
The future of Bitcoin in the near term will depend on economic indicators and the strategies of market participants, including miners and investors. The observed factors can significantly influence its price in the short term.
