Bitcoin and MSTR Face Rising Downside Risk as Risk-Off Sentiment Grows Globally
The post Bitcoin and MSTR Face Rising Downside Risk as Risk-Off Sentiment Grows Globally appeared on BitcoinEthereumNews.com.
Highlights: Bitcoin trades near $104.7K with volatility compression and weakening sentiment MSTR may amplify losses due to leveraged exposure to Bitcoin $97K–$94K remains critical support as geopolitical risks pressure markets Bitcoin continues to hover near $104.7K as volatility tightens and macro headwinds grow. With rising geopolitical tensions and cautious monetary signals, global investors are shifting away from risk assets. This environment places downside pressure on Bitcoin and MicroStrategy (MSTR), which acts as a leveraged proxy to the cryptocurrency. Geopolitical Stress Triggers Risk Rotation Bitcoin traded around $104.7K this week, posting a 7-day decline of nearly 3%. The Euro Area Stock Market Index also retreated, closing near 5,237 amid weakening sentiment. These moves reflect heightened caution following reports of potential U.S. strikes in the Middle East. The Federal Reserve held rates steady but warned of renewed inflation risks tied to tariff policy. These developments reinforced risk-off behavior across global markets. As a result, capital rotated away from high-beta assets, including Bitcoin and crypto-related equities. Euro Area Stock Market Index (EU50) | Source : X Meanwhile, Bitcoin’s price has compressed into a tight 30-day range, reflecting a pronounced volatility squeeze. This setup often precedes a breakout, but the direction remains uncertain. Rolling high and low bands are narrowing, signalling indecision. BTC 30-day Price High and Low All-Time | Source : CryptoQuant Based on realised prices and moving averages, on-chain models show a confluence of support between $97K and $94K. The asset continues trading above key cost bases, but recent weakness raises the risk of downside breaks. If Bitcoin loses this cluster, broader liquidation may follow. Technical indicators show Bitcoin is trading just below its recent 30-day high of $111K. Momentum has slowed, and buyers have failed to reclaim resistance levels. However, Spot Bitcoin ETFs recorded $216.48 million in net inflows yesterday, marking…
