3 reasons why the price of Bitcoin could fall below 100,000 dollars
The growing macroeconomic risks, the decline in Bitcoin miners' revenues, and investor caution could trigger a sharp correction in the price of BTC.
3 reasons why the price of Bitcoin could fall below 100,000 dollars
Market Analysis
Key points:
Despite strong macroeconomic trends, Bitcoin derivatives show decreasing investor confidence in maintaining recent price gains.
Bit Digital's shift to Ether raises fears that other miners may also sell their BTC reserves.
Bitcoin
BTC
91,351 €
briefly fell below 100,000 dollars on Monday after Iran launched attacks on U.S. military bases in Qatar. Although the price recovered to 108,000 dollars by Wednesday, sentiment in the BTC derivatives markets has turned cautious, suggesting that traders are less confident in further upside potential. But are there valid reasons for this fear of a Bitcoin price collapse?
Annualized funding rate of Bitcoin futures. Source: Laevitas.ch
On Wednesday, the funding rate of Bitcoin perpetual contracts fell to its lowest level in seven weeks. In neutral markets, long positions typically pay to maintain leverage, so negative rates are uncommon. Interestingly, this occurred even as Bitcoin recovered to 108,000 dollars.
