Cryptocurrency prices experienced a decline over the last 24 hours, primarily influenced by escalating U.S.-China trade tensions. The White House announced further restrictions on chip exports to China, negatively impacting market sentiment. Bitcoin (BTC) fell over 2.2%, closing below its 200-day simple moving average, signaling the start of a bear market cycle as identified by Coinbase Institutional. Other cryptocurrencies followed suit, with the CoinDesk 20 index dropping 3.75%. While some traders see opportunity in this volatility, they await more concrete data from upcoming economic releases, including U.S. retail sales and unemployment figures. Gold has benefited from the risk assets sell-off, increasing 26.5% Year-to-Date. Market reactions, particularly to BTC and ETH funding rates, indicate cautious optimism among institutional investors. Current BTC dominance rests at 63.95%. In the derivatives market, a lack of participation as prices fell from near $86K to about $83K illustrates the prevailing short bias. As macroeconomic indicators unfold over the coming days, market sentiment may pivot, driven by both geopolitical and economic factors.

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