Bitcoin price has collapsed in the past few months, with concerns about currency and other risky assets. BTC has been trading at $ 80,000, a decrease of 25 % of its highest point this year, and it is near its lowest level since November 11. This article explains the reason for the BTC price and why it may bounce this year.
Bitcoin classifications external flows
The first main reason behind the collapse of the bitcoin price is that the demand from Wall Street investors has declined.
Data by Sosovalue He explains that all the investment funds circulated in Al -Fawia were abandoning the assets this year, as the cumulative external flows amount to more than 5 billion dollars. They now have flows of more than $ 35 billion, although IBIT in Blackrock has the largest amount of $ 45 billion. Bitcoin Top Spot investment funds are fidelity, Grayscale, Ark Invest and BitWise. Ideally, Bitcoin is often good when there is a large demand for Wall Street investors.
One of the possible reasons for this external flow is that these investors do not believe that bitcoin is a safe haven when the risks rise. Instead, most of these investors have moved to gold, which has seen the investment funds circulating in the past few months. SPDR Gold ETF (GLD) is now approximately $ 100 billion in assets, a number that has continued to rise.
The relationship with stocks and other assets
Bitcoin price was shattered due to its association with arrows and other assets such as bonds and commodities. All American shares have decreased in the past few weeks, erasing trillion dollars.
Dow Jones index disrupted more than 12 % of its highest point this year, while Nasdaq 100 and S&P 500 decreased by more than 15 %.
This decrease occurred due to the recent decision by Donald Trump to impose fees on all countries. While he had returned from his initial threat, he kept a tariff for all countries by 10 %. He also maintained his car tariff On aluminum and steel. Historically, Bitcoin has always had a close relationship with stocks and other assets.
Why will the bitcoin price recover
There are some reasons behind the BTC price recovery over time. First, this is not the first time that Byc is transferred to the bear market. For example, more than 33 % of its highest point in March last year decreased to its lowest level in August. Then I organized a strong return shortly after that.
Bitcoin price also decreased by more than 77 % in 2022, as it decreased to a decrease of $ 15217 with a decrease in the Terra and FTX exchange.
The same thing happened in the stock market before. All higher indicators such as NASDAQ 100 and S&P 500 decreased sharply during the Dot COM bubble, the global financial crisis and the beginning of Covid and then recovered.
Bitcoin price has strong techniques
Another main reason behind the BTC price recovery is that it contains strong techniques on the weekly graph. This graph shows that it is still in a total upward trend, which is higher than the moving average for 200 weeks.
More importantly, a giant giant style formed, which is a sign of continued difficult difficulty. This style consists of two oud and spacing trend lines. In most cases, it often leads to a strong increase. If this happens, the currency is likely to rise to a record level of $ 109,240 later this year.
Prediction Partners Prices: The most important reasons why BTC may rise this year first on Invezz
