BTC Faces Pressure: Standard Chartered Warns of Bitcoin’s Volatility as Middle East Tensions Mount
Thursday morning saw a decline in Bitcoin to just over $60,000 after two days of withdrawals from U.S. spot Bitcoin ETFs. According to data from CoinMarketCap, as of the time of publication, the price of Bitcoin has recovered to $60.854, trading flat for the day and down 6.52% for the week. Standard Chartered stated in a report that although the current international unrest does not make Bitcoin a safe-haven asset, investors should still buy into a drop below $60,000.
Bitcoin should not be seen as a hedge against geopolitical concerns, according to Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, following the cryptocurrency market’s decline this week along with stocks as a result of Iran’s onslaught against Israel. Rather, it needs to be viewed as a safeguard against problems related to trade and finance, like bank failures, de-dollarization, and sustainability concerns with the US Treasury.
Risk concerns related to the Middle East seem destined to push BTC below 60k before the weekend,
Kendrick
Bitcoin’s $60K Support Under Pressure as Global Risk Appetite Declines
On the other hand, on October 2, the market witnessed net withdrawals of $91.7 million from Bitcoin spot ETFs, with Grayscale (GBTC) losing $27.3 million and ARKB losing $60.2 million. Moreover, SoSo Value data indicates that Fidelity’s FBTC managed a net inflow of $21 million. Spot Ethereum ETFs saw net inflows of $14.4 million, with $18 million going to BlackRock (ETHA).
The present standstill of Bitcoin has been attributed by Alex Kuptsikevich, senior market analyst at FxPro, to the general risk-off mood in international markets. In addition to profit-taking ahead of the U.S. jobs data, he brought up the continued wave of dollar gains and decreases in risk assets as a result of the Middle East crisis.
Bitcoin found support on the decline towards the 50-day moving average and the $60,000 area. Over the next two days, swings within the $60-63.6K area could be misleading market noise as the market awaits new information,
Kuptsikevich
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