Bitcoin’s Price Slumps Amid Geopolitical Tensions and ETF Outflows
Bitcoin is experiencing a downturn, trading below $105,000 after a 3% drop last week. Escalating geopolitical tensions, particularly the intensifying conflict between Russia and Ukraine, are driving investors towards safer assets. This risk-averse sentiment is weighing heavily on the cryptocurrency market.
- Bitcoin extends its decline after a previous weekly drop.
- Market sentiment worsens due to the escalating Russia-Ukraine war, weakening risk assets like Bitcoin.
- Bitcoin ETFs see slight weekly outflows, while MetaPlanet adds to its holdings.
Geopolitical Uncertainty Fuels Risk Aversion
Reports indicate a significant Ukrainian long-range attack on Russian airbases, damaging several warplanes. While peace talks are scheduled, the likelihood of a breakthrough remains low. This uncertainty is pushing investors towards safe-haven assets like gold, creating an unfavorable environment for Bitcoin.
“Escalating tensions and geopolitical uncertainties are driving investors towards safe-haven assets.”
Institutional Demand Shows Signs of Weakness
Institutional interest in Bitcoin appears to be waning. Bitcoin ETFs experienced a modest outflow of $157.40 million last week, breaking a streak of inflows since mid-April. While this outflow is relatively small, a continued trend could trigger a significant price drop. However, Japanese investment firm Metaplanet recently purchased an additional 1,088 BTC, potentially cushioning any price declines.
Bitcoin’s Outlook for June
Bitcoin reached a new all-time high in May, delivering an 11% return for the month. Historically, June has been a weaker month for Bitcoin, averaging a slight loss. If ETF demand continues to weaken and geopolitical uncertainty persists, traders should be wary of a potential correction.
Bitcoin Price Prediction: Bears Target $100,000
Bitcoin’s price has fallen below a key support level and is currently trading below $105,500. If it faces resistance around $106,406, it could decline further towards the $100,000 mark.
Technical indicators suggest a weakening bullish momentum. However, a recovery above $106,406 could propel Bitcoin towards its all-time high of $111,980.
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