Geopolitical tensions and economic fears weigh on investor sentiment
Cryptocurrency markets experienced a sharp decline on Monday, mirroring the broader downturn in global equities. Bitcoin, the world’s largest cryptocurrency, dropped by 1.6% to $64,450, while Ethereum fell below the $2,650 level. The downturn was primarily driven by escalating geopolitical tensions in the Middle East and concerns about the global economy.
Dogecoin, Shiba Inu, and other altcoins suffer significant losses
The ongoing conflict in the Middle East, with continued Israeli attacks in Lebanon, has heightened geopolitical uncertainty and rattled investor confidence. Additionally, investors are closely watching key U.S. economic data releases this week, including the payroll report, which could influence the Federal Reserve’s decision on interest rate cumudrexts.
Bitcoin saw profit-taking after briefly reaching $66,000. It is currently trading at $64,500 and is struggling to break past resistance.
said Edul Patel, CEO of Mudrex.
Bitcoin has fallen sharply this morning and is trading below $65,000. Based on the liquidation heatmaps, Bitcoin may revisit the range around $61,000 to $63,000 before pushing further.
reported Vikram Subburaj, CEO of Giottus Crypto Platform.
Altcoins also suffered significant losses, with Dogecoin, Cardano, Avalanche, Shiba Inu, Chainlink, and Polkadot all declining by more than 1%. The volume of all stablecoins stood at $55.7 billion, representing 89.3% of the total crypto market’s 24-hour trading volume.
Despite the recent downturn, analysts remain optimistic about Bitcoin’s long-term prospects. Several factors suggest that Bitcoin’s price could rise in the coming months, including seasonality, expectations of a global central bank easing cycle, and the upcoming U.S. Presidential election.
Analysts remain optimistic about Bitcoin’s long-term prospects
Cryptocurrency markets have experienced a significant pullback amidst global uncertainty. While the short-term outlook may be challenging, analysts believe that Bitcoin’s fundamentals remain strong, and its long-term potential remains intact. Investors are advised to exercise caution and stay informed about the latest market developments.
