Bitcoin remains stuck below the $70,000 mark, a level that once served as a crucial floor for the cryptocurrency but has now turned into its most significant near-term barrier. After losing that support, the asset has struggled to regain momentum, and analysts warn that a combination of macroeconomic uncertainty and weak buying pressure could push the asset back into the $50,000 range — a level not seen since September 2024. Iran Tensions, Fed Uncertainty And ETF Withdrawals Market sentiment has noticeably deteriorated in recent weeks. “Sentiment is clearly bleak in crypto markets,” said Noelle Acheson, author of the Crypto is Macro Now newsletter. She pointed out that although traditional financial institutions continue to make meaningful strides in adopting digital assets, those developments have not translated into stronger prices, which she noted, is weighing further on investor confidence. Related Reading: Top Expert Projects Bitcoin Bear Market To End In Less Than 365 Days Broader macroeconomic forces are adding to the unease. According to Bloomberg, traders are assessing escalating geopolitical tensions involving Iran, as well as renewed debate over whether the economic impact of artificial intelligence (AI) could extend beyond the technology sector. At the same time, expectations surrounding Federal Reserve (Fed) interest rate cuts have shifted back into focus following last week’s inflation data, injecting additional uncertainty into risk markets. Capital flows are not offering much relief. US-listed spot Bitcoin exchange-traded funds (ETFs) recorded a fourth consecutive week of net outflows, with $360 million pulled last week alone. Bitcoin At Risk Of Drop To $50,000 “Macro news has been closely correlated with crypto’s risk profile over the last 12 months,” said Paul Howard, senior director at market maker Wincent. He expects Bitcoin to remain range-bound as it searches for a new catalyst to revive sentiment. Howard added that a pending US Supreme Court ruling on tariffs, expected Friday, could have a more meaningful market impact than routine Federal Reserve minutes or inflation reports. Related Reading: XRP Outlook Slashed: Standard Chartered Lowers Forecast From $8 To $2 Amid this debate, investors view $60,000 as a pivotal support level for Bitcoin, but that floor could give way if risk appetite weakens further, according to Robin Singh, CEO of crypto tax platform Koinly. Singh cautioned that the market does not yet display the type of deep capitulation typically associated with durable cycle lows. “One macro wobble, another wave of uncertainty, or even just sustained chop in the mid-$60,000s could easily tip this into a sharper flush back into the $50,000s,” Singh said. “This doesn’t have the same full capitulation feel we’ve seen at true cycle bottoms in the past.” At the time of writing, Bitcoin was trading at around $68,000, marking a 29% decline over the past thirty days. Compared to the all-time high of $126,000 reached last October, CoinGecko data shows a 46% difference between the current trading price and the all-time high. Featured image from OpenArt, chart from TradingView.com
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