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Bitcoin just recorded its biggest weekly decline in history (in USD terms, of course). The week closed with a massive red candle, and the price is now hovering around $78,000. One thing is clear: investors are dialing down the risk as global uncertainty reaches new heights.
Investors Are Playing It Safe
Right now, investors are stepping away from risky assets, thanks to a perfect storm of global tensions.
Geopolitics Stir the Pot
On the geopolitical stage, Donald Trump is shaking things up by distancing himself from supporting Ukraine and cozying up to Russia. Europe is staying cautious for now but has big defense spending plans in the pipeline.
Regardless of personal opinions, this spells uncertainty for investors. The potential consequences of these shifting alliances are unknown, leading to higher volatility and making traders more careful.
The US Economy Isn’t Helping Either
At the same time, the U.S. economy is losing steam, which is rippling through financial markets. The combination of these two factors is dragging down Bitcoin, but also the U.S. tech sector and global stock markets.
That said, Europe – and especially China – seem to be holding up surprisingly well in this environment.
Bitcoin Enters a Critical Zone
According to well-known analyst Kevin Svenson, Bitcoin is now facing a make-or-break moment.
Bitcoin is back in the critical zone of the weekly parabolic trend. We are still holding the current lows of last week, no new low has been created yet. This is $BTC’s last chance to maintain an exponential higher low.
Most analysts, however, are not yet willing to declare the beginning of a bear market.
“Are we in a bear market now? The simple answer is no. There isn’t enough confirmation to say that.” – CrypNuevo on X.
Key Inflation Data Incoming – Will It Shake the Markets?
This week, all eyes are on U.S. inflation data.
- Wednesday: The Consumer Price Index (CPI) is released.
- Thursday: The Producer Price Index (PPI) follows.
These numbers could be game-changers, as inflation was the biggest headache for markets until recently.
Will we be reminded of that pain, or will a weaker economy finally push inflation lower? Buckle up – this week is going to be interesting!
