Compound Interest Theory 1
Today, the cryptocurrency market experienced significant volatility, primarily influenced by escalating geopolitical tensions and changes in macroeconomic signals. The conflict between Israel and Iran has intensified, triggering risk-averse sentiment in the market. While gold has risen, Bitcoin briefly fell below $103,000, and the overall market capitalization of cryptocurrencies declined by about 4-5%. Trading volume surged, and leveraged positions were significantly liquidated, exacerbating downward pressure.
In terms of the macro environment, the resilience of the U.S. economy remains, and potential reforms such as stablecoin legislation provide support in the medium term; however, expectations for a rate cut by the Federal Reserve have weakened, coupled with a reduction in bullish momentum, limiting short-term upward potential.
Bitcoin oscillated throughout the day between a high of $108,000 and a low of $103,000, currently hovering around $104,000, with investors reassessing risks amid increasing uncertainty. Despite price pressures, institutional funds continue to flow into spot ETFs, reflecting that structural demand remains.
Overall, the market today shows a clear risk-averse reaction, but institutional positioning and some favorable macro factors form a hedge, causing prices to oscillate within a key technical range, without a clear breakthrough yet.
