Bitcoin’s price has not been able to surpass the resistance level of $28,000 due to factors such as macroeconomic reasons, regulatory uncertainties, weak trader volume, and the lesser-than-expected impact of spot ETFs. The cryptocurrency, currently moving at the $27,800 level, is going through a challenging period due to reasons like increased selling pressure and declining investor interest.
Global economic trends are among the factors that directly affect Bitcoin’s value. Although recent statements from the US Federal Reserve indicate that economic growth is on a positive trajectory, there are concerns that rising interest rates might limit the overall activity of the economy. This results in decreased interest in cryptocurrencies among investors.
There’s Also a Decline in Interest in Futures Trading
The fact that the Bitcoin futures premium is below 5% indicates a decrease in investor interest. This value usually fluctuates between 5% and 10% annually. In addition to the decline in futures, the decrease in spot trading volume also adversely affects Bitcoin’s recent performance.
Expectations for Bitcoin ETFs Have Dropped
Apart from the upcoming significant event, the Bitcoin Halving, interest in Bitcoin spot ETFs has been a determining factor for recent growth. However, the low trading volume seen in Ethereum Futures ETFs has raised concerns among investors about Bitcoin ETFs. The fact that the US Securities and Exchange Commission (SEC) has not yet approved these products has led to a decline in overall expectations in the industry.
You may interested; K33 Research Advises: It’s Time to Pivot Back to Bitcoin