In the last 24 hours, cryptocurrency markets experienced a decrease of approximately 4% in total market value, with the general downward trend led by Bitcoin, falling to around $2.37 trillion. According to current data, Bitcoin’s price fell to $63,589 on Thursday, stuck at an important resistance level around $67,000. This decline, along with increased volatility in the market, caused investors, especially those in long positions, to be liquidated over $212 million.
In addition to being an industry that is increasingly gaining global importance, the cryptocurrency market is affected by important geopolitical factors and other financial market problems along with its speculative structure. Here are the latest developments that have the potential to affect the price:
General Market Outlook
Popular crypto analyst Ali Martinez also pointed out in his analysis the other day that the TD Sequential indicator gave a sell signal for Bitcoin on the 12-hour time frame. did. This signal serves as an important warning to traders that Bitcoin may show a certain downward trend in the near term.
The TD Sequential indicator has flashed a sell signal on the 12-hour chart, with #Bitcoin facing resistance at the mid-level of a parallel channel!
NEWS CONTINUES BELOWExercise caution, given this indicator’s track record. Particularly watchful if $BTC drops below the $65,500 support level. pic.twitter.com/m7iquoi1L5
— Ali (@ali_charts) April 24, 2024
NEWS CONTINUES BELOW
Martinez’s warning emphasizes caution in case Bitcoin falls below the support level around $65,500. A decline below this level may mean that uncertainty and selling pressure may increase in the market.
However, it has also been observed that Bitcoin whales have slowed down their accumulation rate recently. Especially despite the last halving event, the fact that large Bitcoin owners have reduced their accumulation tendencies brings a certain caution in the market. This situation may affect the volatility that Bitcoin may experience in the short term.
Arrest News from the USA
According to the statement made by the US Department of Justice (DOJ), the founders of Samourai Wallet, which provides a mixer service for cryptocurrencies, were arrested. This arrest had a significant impact on the future of Bitcoin and other cryptocurrencies. Particularly the ongoing tension in the Middle East and the news of the arrest from the USA caused a wave of withdrawal in the cryptocurrency markets.
News of the arrest created concern and uncertainty in the cryptocurrency community. The arrest of Samourai Wallet’s founders could be perceived as an indication of the increasing pressure from regulators on cryptocurrency markets. This may increase speculation that tighter regulations and controls are coming in the cryptocurrency industry.
Spot Bitcoin ETF Entries
On April 24, 2024, net flows to US-based spot Bitcoin ETFs were minus $121 million after BlackRock’s iShares Bitcoin Trust (IBIT) recorded zero flows for the first time since its founding. This situation shows the instability and uncertainty in investor interest in cryptocurrencies. Additionally, Grayscale’s GBTC recorded a cash outflow of approximately $130.4 million on Thursday. This has raised concerns about volatility and liquidity in crypto markets.
BlackRock’s Statement
On Wednesday, intense speculation that BlackRock was leveraging Hedera (HBAR) to tokenize its funds led to a massive surge in RWA-based digital assets. Realizing the potential of Hedera’s technology and RWA-based digital assets, investors saw a rapid increase in HBAR price. However, BlackRock later confirmed in a statement that it has no commercial relationship with Hedera and does not intend to tokenize its funds on the network. This news caused a sharp decline in the HBAR price, losing as much as 35 percent in the last 24 hours.
Tension in the Middle East
On the other hand, tension and geopolitical uncertainties in the Middle East also affected the prices of cryptocurrencies. Many investors tend to move towards safe haven assets in stressed areas. So, as tensions in the Middle East rise, some investors may avoid cryptocurrencies and turn to more traditional assets.
US Economic Uncertainty
US President Joe Jiden has proposed a 44.6 percent tax on capital gains, affecting crypto investments worth more than $400,000. Ahead of next week’s FOMC statement and the federal funds rate, investors are speculating on possible delays in interest rate cuts towards the end of this year.
You can access current market movements here.
