Bitcoin BTC
-1.84%
The week started on a calm note, with the price down nearly 2% in the last 24 hours and falling below $37,000.
The world’s largest digital asset by market capitalization fell along with stocks on Wall Street, reversing its dominance over the past month. In the first hour of trading Monday morning, the Dow Jones index was down 0.1%, the S&P 500 was down 0.3% and the Nasdaq was down 0.3%.
Traditional market investors beware
Analysts expect cautious investors to seek profits after the recent rally in traditional markets, which would trigger a retracement from elevated positions observed in November.
According to ETC Group head of research André Dragosch said these macro-related catalysts could put downward pressure on Bitcoin in the near term. “I think the potential for a near-term downside is quite high, barring any near-term approval for spot Bitcoin ETFs in the U.S.,” Dragosch told The Block.
However, he added that ‘buyer fatigue’ should also be considered when analyzing current market trends. “Global ETP flows have reached their highest level of the year. The only investors who appear to be underexposed are global cryptocurrency hedge funds based on their latest performance sensitivity to Bitcoin,” the ETC Group head of research added.
Bullish factors for 2024
Dragosu emphasized: Bitcoin’s short-term decline could lead to a strong 2024. He listed a confluence of bullish on-chain and macro factors that could impact the market in 2024.
He added, “There could be ETF approval, Bitcoin halving, a possible U.S. recession due to a U.S. monetary policy reversal, etc.”
Bitcoin was trading at $36,934 at 10:41 a.m. ET, according to data from The Block.
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