Bitcoin faces mounting pressure as multiple headwinds converge to drive prices lower, threatening a second consecutive quarterly decline. The cryptocurrency struggles to gain momentum amid escalating US-Iran tensions dampening risk appetite, while surging oil prices fuel inflation concerns and strengthen expectations for tighter monetary policy. Trade Nation’s David Morrison notes higher interest rates are reducing appeal for non-yielding assets like crypto, intensifying sector-wide selling pressure.
ActivTrades’ Saverio Berlinzani warns Bitcoin could test the August 2024 low of 49,443 dollars from a technical perspective. Persistent outflows from US spot Bitcoin ETFs are creating additional technical selling pressure, temporarily decoupling crypto from broader Wall Street equity trends. Major altcoins including Ethereum, Solana, and XRP face even steeper percentage losses when Bitcoin declines. Some market observers suggest crypto enthusiasts are shifting attention toward AI-related investments, though Bitcoin advocates maintain its core value proposition remains unchanged.
FXnCO Insight
Traders should monitor the 49,443 dollar technical level closely while watching for continued ETF outflows as key indicators of further downside risk.
Source: Finance Magnates