Bitcoin price falls below $104,000 – traders believe in recovery!

Bitcoin price falls below $104,000 – traders believe in recovery!

Current developments in the Bitcoin market paint a picture full of uncertainty and volatility. Bitcoin prices have fallen below $104,000 today, down over 20% from its record high of more than $108,000 in January. Analysts see the reason for this decline primarily in the macroeconomic uncertainties arising from the trade war between the USA and other countries and the effects on the US Federal Reserve's monetary policy. [it-boltwise] reports optimism among professional traders who expect the market to recover despite the turbulent times.

The link between Bitcoin and US Treasuries has been particularly strong recently. While 10-year US Treasury yields fell from 4.60% to 4.42%, this also coincides with a drop in the price of Bitcoin by $7,900, which simultaneously led to increased buying activity. Market sentiment remains tense, especially given questions about Bitcoin's future trajectory.

Bitcoin price volatility

Bitcoin price volatility has reached levels not seen in six months. With a 30-day volatility of 3.6%, price movements show clear effects of price fluctuations influenced by geopolitical factors and uncertainties in the US economy. Four weeks ago volatility was just 1.6%, making the latest developments all the more remarkable. [news-crypto] highlights that investors continue to pay attention to the stability of the US Federal Reserve, which is currently keeping interest rates stable, and this leads to ongoing concerns about future market conditions.

The correlation between Bitcoin and the stock market remains another issue that further complicates price movements. Amberdata's Greg Magadini says the high volatility environment could persist until there is more clarity on the impact of trade tariffs on inflation and interest rates. Grayscale's Zach Pandl, however, emphasizes that Bitcoin has been absorbed into broader macroeconomic uncertainty, prompting many investors to diversify their portfolios.

Market analysis and perspectives

Although the Bitcoin price is currently under pressure, market analyzes show mixed perspectives on future developments. While the premium for Bitcoin futures is in neutral territory, net outflows of $347 million from Bitcoin ETFs on May 29 suggest some restraint. At the same time, traders did not see excessive leverage at the all-time high on May 22, which may indicate some degree of stability among traders.[it-boltwise]

In summary, the Bitcoin market remains tense, but experts are optimistic that the current period of volatility represents an attractive entry opportunity for new investors. The coming weeks will be crucial to assess the market's stability and identify possible signs of recovery. The analysts call for attention to be paid to developments in the US economy, as they will continue to have a significant impact on the price of Bitcoin.