Bitcoin has entered bear territoriy, down 25% from its all-time high as macroeconomic uncertainty and political factors are spooking investors.
The cryptocurrency reporter Emily Nicolle claimed on Bloomberg TV that Bitcoin is “still a very risk-on asset” that is heavily tied to shifts in the macroeconomic landscape.
Nicolle made this statement in reference to Bitcoin. In light of this, the events that take place on Wall Street will be reflected in Bitcoin. Setbacks inside the cryptocurrency business are also contributing to the slump. One example of this is the hacking of Bybit, which occurred last week and resulted in a “rough period” for the sector.
In addition, she said that political unpredictability is an issue. There were some investors who had anticipated that the Trump administration would move toward more transparent regulatory developments; nevertheless, such expectations have not been satisfied.
Where does crypto go next?
She indicated that investors are closely monitoring the $70,000 level, as it represents a significant psychological and technical support zone. Furthermore, she brought to my attention the fact that the options markets are very concentrated around this threshold, which indicates that a breach below it could result in additional selling pressure.
In the meantime, the cryptocurrency market as a whole has been experiencing difficulties alongside Bitcoin. She stated that, as expected, alternative cryptocurrencies are also experiencing significant challenges. Certain coins are subject to a greater amount of selling pressure.
A viral coin scandal involving the president of Argentina has hammered Solana particularly severely. In the meantime, due to Ethereum’s affiliation with the $1.5 billion hack, there has been a lot of pressure on the cryptocurrency’s price.
The tide lifts all boats, but Bitcoin is the tide without any upward potential. As Nicolle pointed out, when Bitcoin faces difficulties, other cryptocurrencies typically suffer considerably more severely.
Next move for Bitcoin
What comes next for Bitcoin will be determined by the state of the macroeconomy and the advances in regulatory policy. According to her argument, the recent OEs of Bitcoin may “be a boon for Bitcoin” if the Trump government were to adopt sensible stablecoin laws or any type of pro-crypto policies.
