Bitcoin’s Recent Declines

As the leading cryptocurrency, Bitcoin is experiencing consecutive declines, prompting analysts to warn of potential further decreases.

The Crypto Fear & Greed Index, which tracks sentiment surrounding Bitcoin and cryptocurrency amidst investor panic selling, currently registers at extreme fear with a score of 20. This extreme fear situation can be interpreted as a buying opportunity, indicating that investors are anxious and the price may be at a low point. Many are questioning what is necessary for a price increase to begin.

Matrixport analysts highlighted in their latest report that a stronger catalyst is essential to reignite the bullish trend for Bitcoin.

With growing fears surrounding a tariff war, Donald Trump’s actions related to Bitcoin and crypto are increasingly seen as secondary and are failing to initiate the anticipated rise in price.

The analysts from Matrixport observed that the market’s reaction has been lukewarm despite significant events, such as the White House Crypto Summit and President Trump’s signing of an executive order to establish a Strategic Bitcoin Reserve.

Perpetual funding rates for Bitcoin, Solana (SOL), and Ethereum (ETH) are remaining in the single-digits, indicating a moderate reaction from the market. Consequently, Matrixport analysts stress that Bitcoin requires a more substantial catalyst to resume its upward trajectory.

> “The White House Crypto Summit and approval of the US Strategic Bitcoin Reserve failed to trigger a rally in the crypto market as perpetual-term funding rates remained near single digits.
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> This indicates a lack of enthusiasm from retail investors, which sharply contrasts the excitement seen in April and December of 2024 when funding rates soared into high double digits.
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> Even the momentum surrounding Trump’s inauguration was notably weak, suggesting that a more significant catalyst is essential for Bitcoin to embark on its next bullish phase.”

Note: This is not investment advice.