#CoinDesk Daybook
Bitcoin (BTC) and the broader crypto market recovered over the weekend, offering a brief reprieve after sticky selling pressure kept cryptocurrency prices depressed in the aftermath of a $500 billion value-destruction event.
The price of bitcoin rose 3% in the past 24 hours to $110,770. It remains down about 4% for the month. The recovery came as global risk sentiment improves, with equities rising and investors rotating back into more volatile assets.
U.S. President Donald Trump’s softer stance on
#Tariffs and signs that the
#Fed 'eral Reserve may ease monetary policy later this year have helped calm markets. The CoinDesk 20 (CD20) index rose 4.3% in the past 24 hours with all members in the green.
“While bitcoin has seen a notable short-term correction, the long-term trend remains a different story, as the cryptocurrency’s trajectory is still heavily influenced by macroeconomic factors such as the Federal Reserve’s monetary policy, U.S. dollar strength, spot bitcoin ETF flows, and geopolitical risks,” XS.com markets analyst Linh Tran told CoinDesk in an emailed statement.
Still, short-term momentum may not signal a lasting trend. Analysts at Coinbase Institutional warned that thin liquidity, a strong U.S. dollar and uncertainty around the Federal Reserve's rate path continue to weigh on market structure.
A spike in U.S.
#Treasury yields at the end of last week and
#GeopoliticalUncertainty tensions with Israel conducting retaliatory airstrikes in Gaza after attacks on its forces while a ceasefire was in effect and as Russia advances in Ukraine, have kept many institutional investors cautious.
Nevertheless corporate accumulation has kept on going, with BitcoinTreasuries data showing that in the past 30 days these entities increased their holdings by 8.4% to 4.04 million BTC. Access to crypto exposure is also growing, with BlackRock and 21Shares adding debuting their crypto ETPs on the London Stock Exchange for retail investors.
“Overall, in my view, bitcoin is currently in a reaccumulation phase following its short-term correction, with market sentiment stabilizing and institutional demand remaining resilient,” Tran added. Stay alert!
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$BTC