Quick overview
Bitcoin is witnessing a divergence in views between institutional optimism due to increasing demand and ongoing accumulation, and caution stemming from geopolitical risks and technical volatility. The Fear and Greed Index, which settled at 48 out of 100, indicates a state of neutrality after a clear decline in momentum in recent days.
Optimistic trends
- Increasing institutional demand: major companies and ETFs continue to inject liquidity into Bitcoin.
- Price stability: the price has managed to maintain the $100,000 level for over 40 days, which is a positive indicator for stability.
Existing challenges
- Potential price correction risks: some analysts warn of the possibility of prices dropping to the range of $93,000–$95,000.
- Market dominance: BTC continues to dominate 64% of the total market, hindering the movement of altcoins.
1. General market sentiment
The market shows clear caution, with Bitcoin trading at $104,881, a weekly decline of 4%. - Momentum decline: the Fear and Greed Index dropped from 71 (Greed) to 48 (Neutral).
- Continued institutional inflows:
• The European Blockchain group bought 182 BTC over the week.
• The BlackRock IBIT fund continued to attract positive inflows for 33 days.
2. Key influencing issues
- The gap between individual and institutional investors: declining individual interest versus active institutional buying.
- Pressure on the mining network: revenues and transaction fees are at their lowest since March 2012.
- Altcoin performance: only 10 out of 50 altcoins have outperformed BTC over the last three months.
3. Influential opinions and analyses
- Dr. Profit: sold 25% of his BTC holdings in anticipation of geopolitical risks.
- Daan Crypto: Altcoins will not rally unless BTC dominance drops below 65%.
- Santiment: FOMO wave increased before BTC's drop by 4%–6%, supporting reverse analysis.
Summary and future questions
Bitcoin stands at a crossroads between strong institutional support and potential selling pressure from individual investors, amid rising geopolitical risks and declining miner profitability. The $100,000 level remains an important psychological anchor. The central question: Can ETFs maintain positive momentum and balance the impact of expected profit-taking after the Federal Open Market Committee (FOMC) meeting?
The article according to CMC AI analysis
The article is not financial advice, do your own research
