The recent price drop in Bitcoin demonstrates market sensitivity to geopolitical events while institutional investors continue to accumulate assets.
Bitcoin's Decline and Causes
Bitcoin slid below **$104,000**, marking a **5.5%** decline over the past week, breaking a multi-week rally. Analysts point to various factors contributing to the drop:
* Profit-taking near $110K. * Rising geopolitical tensions. * A shift to risk-off sentiment amid global uncertainty, particularly regarding Israel-Iran tensions. * Equity markets are wavering: the Nasdaq dipped 0.8%, impacting crypto flows. * Major exchanges like Coinbase and Binance see increased limit sell pressure.
Institutional Investments and Wallet Activity
Despite the dip, institutional investors are actively buying. Last week, **12,662 BTC** ($1.35 billion) and **191,057 ETH** ($502 million) flowed into spot ETFs, primarily via BlackRock’s iShares.
Firms like MicroStrategy and SharpLink are also engaging in asset accumulation. Additionally, over 600 new wallets holding 10+ BTC have been created recently.
Technical Analysis and Outlook
Key supports lie at **$105K**, **$102–104K**, and even **$98–93K** (100–200-day EMAs). Upside potential remains if Bitcoin can recapture the **$108–110K** zone, possibly fueling a **25% rally** toward new highs.
Indicators like bullish ETF inflows, whale accumulation, and macro liquidity suggest the **bull trend remains intact**, despite short-term volatility.
Bitcoin's dip reflects the market's sensitivity to global unrest, even as institutional wallets accumulate aggressively, setting the stage for a potential rebound if macro conditions stabilize.
