BTC Decline Amidst Economic Uncertainty
BTC has declined by 2.43% over the past 24 hours, trading at $80,338. This decline is attributed to U.S. economic uncertainty and bearish market sentiments.
Bitcoin’s Leveraged Positions Decline
According to CryptoQuant, since January 29, the Futures Estimated Leverage Ratio has been negative, currently at around -0.13. This indicates that traders are reducing leverage and avoiding speculative activities due to declining risk appetite, reflecting strong bearish sentiments.
Political and economic concerns surrounding Trump’s policies have contributed to this market trend, resulting in pessimism among investors. The Coinbase Premium Index has been negative for two weeks, suggesting a lack of institutional accumulation and continued bearish sentiments.
Additionally, dormant coins have begun moving, with 8,000 BTC becoming active. Their transfer to exchanges could lead to increased selling pressure. Exchange Netflow indicates significant inflows, with 50k BTC moving into exchanges.
What’s Next for BTC?
The reduction in leveraged positions signifies investors’ bearish outlook. Bitcoin’s future is closely tied to the U.S. economy. If current trends persist, BTC may drop to $77,592; however, improved market conditions could push it to $84k.
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