Following a euphoric rally on Sunday, Bitcoin has dropped below the $84,000 level, marking a 10% decline over the past 24 hours. Market experts attribute this to a lack of positive sentiment among US investors.
Current State of the Bitcoin Market
Ki Young Ju, the founder and CEO of the market analytics platform CryptoQuant, believes the bitcoin market will continue to struggle until sentiment improves among U.S. investors.
Coinbase's Role in Market Changes
Ju previously stated that BTC whales on the largest American crypto exchange, Coinbase, led Sunday's surge. This was evident in the Coinbase Premium Index, which surged significantly. Bitcoin’s rally from $85,166 to $94,590 was triggered by U.S. President Donald Trump’s announcement of creating a strategic crypto reserve. Currently, BTC has reverted to $83,000, with the Coinbase Premium Index dropping below pre-rally levels.
Future of the Bitcoin Market: What to Expect
According to Ju, despite the current sentiment downturn, the bitcoin bull cycle is still intact. Key indicators remain neutral, and mining activity signals that miners are not capitulating. However, the possibility of the cycle ending at this phase cannot be ruled out.
Although the crypto market appears unstable, Bitcoin's fundamental ratios remain strong. The market's future hinges on sentiment changes and ongoing activity.
