Key Takeaways:
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Despite MacRO’s strong trends, bitcoin derivatives show the investor’s confidence in maintaining recent prices.
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Bit Digital’s Pivot To Ether raises the fear that other miners can also load their BTC reserves.
Bitcoin (Btc) Short dip below $ 100,000 on Monday after Iran launched attacks on United States military bases in Qatar. Although the price broke $ 108,000 on Wednesday, the emotion in the BTC derivatives markets became careful, suggesting that entrepreneurs were less confident about further reversed. But are there any valid reasons for this fear of a bitcoin price crashing?
On Wednesday, the Bitcoin Perpetual contracts The funding rate drops to its lowest levels in seven weeks. In neutral markets, long positions usually pay to maintain action, so negative rates are not uncommon. Noteworthy, this happened even though Bitcoin had raw for $ 108,000.
Instead of focusing only on the consequences, such as avoiding demand for leveraged positions, it is important to consider the possible causes for bearish funding rates. Part of the erosion of confidence originated in the global trade war started by the US in April. While temporary truces are established, some will closely expire, including the Eurozone Agreement, set to Lapse On July 9.
US president Donald Trump has been widely criticized for returning the course during the trade negotiation. According to a Washington Post analyst, the Trump administration has made more than 50 tariff policies changes Because he was in office. As a result, investors are increasingly concerned that the trade conflict may intensify.
Tariffs, Ai Hype and Refusal to Bitcoin Miner’s profitability
Adding to the restless, the US Gross Domestic Product posted a 0.5% year-on-year decline in the first quarter, based on the final official figures released Thursday. CNN has presented the unexpected backwards in a massive trade Lack.
Despite this, Bitcoin entrepreneurs failed that the US small cap stocks showed being stable as the BTC remained well below the $ 112,000 mark.
The Russell 2000 Index, which excludes the 1,000 largest companies listed in the US, has advanced to a four -month height. Because many investors are still classifying Bitcoin as a risk-on asset, the fear surrounding the “reckless artificial intelligence that spends on driving high values” acts as a ceiling for the price of Bitcoin.
Gartner consulting analysts mentioned That “most AI agent projects today are early stage experiments or proof-of-concepts that are often driven by hype and often wrong,” as reported by Yahoo Finance. As such, with a more careful investor posture, some income that gains above $ 105,000 is expected.
Related: The Bitcoin Bulls Gain Edge, target of $ 110k in advance of $ 20B Monthly Options to Expire
Another source of risk comes from the increasing number of companies that have added bitcoin to their balance sheets. An unexpected move occurred as Bit Digital (BTBT), a New York -based mining company listed in Nasdaq, announced on Wednesday its desire to overthrow mining infrastructure and BTC Holdings to buy ether (Eth) instead.
On March 31, the Bit Digital was held 24,434 ETH and 417.6 BTC in reserves. This development has raised the fear that other miners can also liquid their BTC positions, especially from mining The profits have fallen In a two -month low, according to a cryptoquant report.
While macroeconomic conditions still support a potential high time of Bitcoin, given the growing pressure on the central banks to adopt loose financial policies. Therefore, the threat of a temporary correction below $ 100,000 remains a real possibility.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
