Bitfinex recently highlighted that Bitcoin has exhibited a stable range over the past week, oscillating between $91,000 and $102,000 in the last 90 days. This period of market inertia is largely attributed to ongoing macroeconomic uncertainty and an increasing correlation between Bitcoin and traditional financial markets. The lackluster performance of the S&P 500, which has struggled to surpass the 6,000-point threshold, has dampened investor sentiment and reduced appetite for risk-oriented assets.
Furthermore, institutional engagement in Bitcoin has significantly tapered off. After peaking at inflows of 18,000 bitcoins per day in November 2024, notable withdrawals have been observed, including a substantial $360 million on February 20th. This trend reflects a broader contraction in the market, seen in the declining activity of leveraged trading.
As Bitcoin approaches a critical juncture following nearly three months of consolidation, market participants are keenly awaiting a potential catalyst. Future movements in Bitcoin’s price are anticipated to be swayed by prevailing macroeconomic trends, which could yield substantial effects on market dynamics.
Source: https://en.coinotag.com/breakingnews/bitcoin-stagnates-amidst-macroeconomic-uncertainty-whats-next-for-the-dominant-cryptocurrency/