Bitcoin Bear Market May Last 90 Days Amid Trade War Concerns and Potential Recovery Signals
The post Bitcoin Bear Market May Last 90 Days Amid Trade War Concerns and Potential Recovery Signals appeared on BitcoinEthereumNews.com.
The ongoing trade tensions continue to impact investor confidence, raising concerns about the sustainability of recent gains in the cryptocurrency markets. The latest data indicates a significant reduction in speculative trading within crypto, a clear reflection of investors seeking safer assets amid geopolitical uncertainties. Timothy Peterson remarked, “These fluctuations underline the critical intersection between global economic policies and cryptocurrency valuations.” Explore how escalating trade tensions influence cryptocurrency valuations, with insights from leading analysts on the current market dynamics. Trade War Fears Could Signal an Extended Crypto Downturn The potential repercussions of the current trade war extend beyond traditional markets, prompting a re-evaluation of risk in the cryptocurrency sector. As market sentiment shifts, many investors are reevaluating their positions in digital assets. While Bitcoin has historically bounced back from bearish conditions, the ongoing geopolitical tensions could pose a prolonged risk, as highlighted by recent trends. Impact on Bitcoin Supply Metrics Amidst Geopolitical Tensions The Glassnode Hot Supply metric indicates a retreat in short-term Bitcoin holdings, suggesting that investors are hesitant to hold onto BTC in the current climate. As of March 20, only 2.3% of Bitcoin was held for a week or less, down from 5.9% Sentiment Analysis: Retail Traders and Long-term Holders Research from Nansen outlines that a significant portion of retail investors is currently entrenched in their BTC positions, leaving limited room for new capital influx. This reality adds another layer of complexity to the crypto market, where the return of bullish retail sentiment is crucial for driving prices upward. The persistence of predominant long-term holders indicates a cautious optimism, but market analysts note that fresh investments are essential for a definitive recovery. Withdrawal of Risk Appetite in Market Indicators Additionally, the underlying economy’s performance and forthcoming negotiations may serve as pivotal points for the cryptocurrency market. According to…
