Bitcoin has faced several pressures since its all-time high earlier this year.
Macro turmoil shakes Bitcoin
Bitcoin hit its all-time high of $109,114 in January but has since decreased by 24% to $82,600. Major macroeconomic events like Trump's trade policies and global trade tensions have weighed on investor sentiment. Inflation data briefly provided optimism, but the overall market remained cautious.
Institutional money retreats
Since February, Bitcoin ETFs have seen significant outflows. The largest outflow occurred on February 25, with over $1 billion leaving ETFs. Despite this, the BlackRock IBIT ETF remains a market leader. The involvement of key policymakers in Bitcoin highlights its growing influence, though the declining open interest in derivatives indicates a cautious investor approach.
History hints at a rebound
Technical indicators and historical patterns suggest Bitcoin might be nearing a local bottom, with its recent drop potentially temporary. Analysis indicates that the current market cycle resembles March 2017, where a downturn was followed by a significant rally. However, some analysts warn of potential unforeseen events that could drive prices lower.
While historical data suggests Bitcoin may recover, the unstable global economic situation makes this forecast uncertain. Investors should be prepared for increased volatility.
