$BTC
1. Geopolitical Tensions: Escalating conflicts, particularly Israel’s attack on Iran, triggered a risk-off sentiment across markets, impacting cryptocurrencies. Bitcoin experienced a minor drop but rebounded quickly, though broader market uncertainty persisted.
2. Macroeconomic Uncertainty: Investors awaited the U.S. Federal Reserve’s policy meeting, with expectations of unchanged interest rates and reduced chances of rate cuts in 2025 (only two cuts priced in, starting September). Higher-than-expected Producer Price Index (PPI) data could have amplified selling pressure.
3. Technical Resistance and Liquidations: Bitcoin faced rejection at the upper Bollinger Band ($110,253) and consolidated around $106,062. Over $1.1 billion in long positions were liquidated since June 13, with Bitcoin accounting for over 40%. Technical indicators like a bearish MACD crossover and RSI cooling to 42.06 signaled short-term weakness.
4. Market Sentiment and Leverage: High leverage and overheated funding rates led to a correction after Bitcoin’s rally. The Fear & Greed Index at 65 showed cautious optimism, but aggressive liquidation zones near $103,800–$106,000 acted as barriers.
5. Broader Crypto Market Dynamics: The crypto market lost value, with altcoins like Ethereum (-1.7%) and Solana (-2.4%) also declining. Bitcoin’s dominance over altcoins (Altseason Index at 18) limited capital flow to other assets, keeping pressure on the market.
Bitcoin was trading at approximately $106,856, down 2.46% (Rs 90,13,614 in INR terms), reflecting these combined pressures. Despite the dip, analysts noted Bitcoin’s resilience, with $100,000 as a psychological support level and potential for a rebound if macro fears ease.
