Bitcoin (BTC) is recorded at $101,570.65, reflecting significant pressure in the global crypto market. This decline is triggered by a combination of macroeconomic factors and volatile market sentiment. Let's discuss what happened and the prospects ahead.
Factors Behind the Decline
Unexpected Inflation Data
The decline in Bitcoin's price appears to be influenced by global inflation data released last week, which raised concerns among investors. The data indicated inflationary pressures higher than expected, affecting risk assets such as crypto.
Speculation on Interest Rate Hikes
Analysts link this pressure to speculation about interest rate hikes by major monetary authorities. Tighter monetary policy is likely to shift capital from speculative assets like Bitcoin to safer instruments.
Regulatory Pressure
Tighter crypto regulation plans from one of the major economic blocs also influence market sentiment. Regulatory uncertainty often triggers volatility, especially for institutional investors.
Whale Activity
Transaction data shows a 15% increase in large movements to the crypto exchange, indicated as a sell signal by large Bitcoin holders. This could trigger a cascading sell-off.
Market Impact and Reaction
This decline affects not only Bitcoin but also altcoins like Ethereum and Solana, which tend to follow BTC trends. Liquidation of leveraged positions in the derivatives market is also reported to reach hundreds of millions of dollars, adding to the selling pressure. However, some investors see this as a buying opportunity, given Bitcoin's history of often rebounding after corrections.
Prospects Ahead
Experts offer varied views. Some predict Bitcoin could drop deeper into the $90,000 zone if selling pressure continues, while others are optimistic about recovery potential if key economic data next week shows signs of stabilization. Institutional adoption and global monetary policy will be key market drivers in the near future.#BearishAlert $BTC