Bitcoin (BTC), the leading cryptocurrency, is trading below the $114,000 level, a decline of about 9 percent from its previous high of $124,457, reached last week on August 14. The crypto markets are adjusting after recent highs. The sentiment also reached altcoins. Market analysts, however, maintain an optimistic outlook, indicating that current macroeconomic factors may signal a possible trend reversal.
At last check, Bitcoin was trading around $113,708, down 1.13 per cent, with a 24-hour trading volume of $70.98 billion, according to data. In the last day, the leading cryptocurrency experienced variations ranging from $112,578 to $115,906. Its market capitalisation stood at $2.26 trillion, solidifying its status as the largest cryptocurrency globally by market value. Bitcoin is currently holding above the $113,400 mark as global markets respond to US President Donald Trump’s announcement of 50 percent additional tariffs on aluminum and steel products, said Edul Patel. He believes that these tariffs have heightened worries regarding economic contraction in the US, leading to a risk-off sentiment.
Patel suggests that macroeconomic factors, including the weakening US dollar, are enhancing the attractiveness of non-sovereign assets, potentially indicating a shift in trends. Furthermore, Bitcoin whales have accumulated more than 20,000 BTC in the last week, indicating robust demand for the asset. Bitcoin must protect the $112,000 support level. If it fails to do so, Bitcoin could test the $110,000 zone before a potential relief rally. On the other hand, the pullback in Bitcoin’s price was attributed to profit booking at higher levels. Bitcoin remains stable, yet it is experiencing a short-term downtrend in trading.