Bitcoin is facing volatility again. After reaching a record high of over 84,000 dollars, the cryptocurrency fell by 3.5% within hours. This fuels fears of a return to 72,000 dollars. The key reason is uncertain macroeconomic liquidity conditions that weaken risky assets.
A Warning Signal on Global Liquidity
The bitcoin market is undergoing turbulence. After a sharp rejection at the 200-day exponential moving average, sellers took control, resulting in a drop below 84,000 dollars. This correction is set against the broader context of worsening macroeconomic liquidity conditions. Analyst Capital Flows indicates that without improvement in these conditions, bitcoin could plunge to between 72,000 and 75,000 dollars.
Potential Bitcoin Correction Threats
Several factors explain this threat of correction: - Contraction of global liquidity: Less capital flows towards risky assets, reducing investors' interest in bitcoin. - Increasing correlation with traditional markets: BTC is now perceived as a risky asset like stocks. - Return of investors to safer investments: With high interest rates, bonds and other low-risk investments attract more capital. - Bearish technical signal: The rejection of bitcoin from its key moving average increases the possibility of a continued decline.
Divergent Perspectives: Drop or Rebound?
If the current decline raises fears of a return to 72,000 dollars, other signals suggest the opposite momentum in the short term. Some experts are observing an increase in the global M2 money supply, historically correlated with Bitcoin movements. Ultimately, it will depend on BTC’s ability to hold certain critical technical levels. In this uncertain environment, investors should prepare for increased volatility, where bitcoin could quickly oscillate between hope and uncertainty.
The bitcoin market remains in a phase of instability. The economic policy of the United States Federal Reserve and other central banks will play a key role in market direction. Investors should be prepared for dynamic changes, where every move could lead to both a crash and a rally.
