On Wednesday, there was not a lot of movement observed in Bitcoin, as it remained at \$114,170, which was only 0.2 per cent from the time of decline. The price was trading around a one month low hit earlier on in the week. The attitude of investors was cautious as investors were worried about issues affecting global trade and economic problems.
The wider crypto market, too, recorded losses following a short rally on weakening risk appetite. The prices of the cryptocurrencies fell as traders withdrew, citing increasing economic concerns. Cryptocurrencies such as Bitcoin are experiencing profit-taking following healthy gains in July, which further increased the market’s susceptibility.
Galaxy Digital founder Michael Novogratz warned that the world of Bitcoin treasury companies has peaked. He noted that Bitcoin holdings by companies like Michael Saylor’s Strategy (MSTR) could limit opportunities for newcomers. Novogratz raised concerns that newcomers have a hard time because the market is not providing much liquidity or fundraising potential.
Also reporting significant outflows were Bitcoin ETFs, with U.S. spot Bitcoin ETFs recording a fourth consecutive day of net outflows. A total of $196 million was withdrawn from these funds, mostly by large players such as FBTC of Fidelity and IBIT of BlackRock. Outflows indicate mounting risk aversion in the market against the backdrop of deteriorating economic figures and trade fears.
With world trade tense and the economy remaining unpredictable, Bitcoin continues to be strained. The digital currency has to continue to battle sluggish economic growth and geopolitical tensions. The rest of the crypto market also remains under pressure as it suffers few chances of recovery.
