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Bitcoin Price Slides for Fifth Day as Risk-Off Sentiment Weighs on Prices: Analyst

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Bitcoin has fallen for a fifth straight session, pulling again from its highest ranges since November as it struggles to hold above the $92,000 mark.

Key Takeaways:

  • Bitcoin has slid for a fifth straight day on profit-taking and rising political and macro uncertainty.
  • The pullback stays orderly, with low liquidations, falling leverage, and renewed spot ETF and whale demand.
  • Ongoing issues over Federal Reserve independence are reinforcing risk-off sentiment.

According to Samer Hasn, senior market analyst at XS.com, the decline displays a mixture of profit-taking and a broader shift towards danger aversion pushed by political and macro uncertainty.

In a word shared with Cryptonews.com, Hasn mentioned merchants are responding to a sudden spike in US political danger alongside rising geopolitical and commerce tensions.

Bitcoin Sell-Off Shows Limited Stress as Spot Demand Strengthens

Despite the pullback, Hasn famous that market harm stays restricted. Futures liquidations have stayed comparatively low, suggesting the sell-off lacks the hallmarks of panic and will level as a substitute to a interval of consolidation.

Signs of underlying demand have additionally emerged. Data from SoSoValue exhibits US spot Bitcoin exchange-traded funds posted their strongest week of web inflows since October, following a $20 billion futures liquidation occasion earlier within the month.

On-chain metrics echo that development, with addresses holding between 1,000 and 10,000 BTC rising by 28 over the previous week, based on BGeometrics.

Meanwhile, CoinGlass knowledge exhibits crypto futures open curiosity has dropped by about $9 billion from January highs, indicating diminished leverage and a larger reliance on spot shopping for.

Even so, Hasn mentioned renewed “risk-off” forces are capping Bitcoin’s rebound. A key concern is political turmoil surrounding the US Federal Reserve.

Reports of a legal investigation involving Fed Chair Jerome Powell have sophisticated management succession and raised questions concerning the central financial institution’s independence.

“This institutional friction has instant penalties for market sentiment, as uncertainty relating to the Fed’s autonomy usually triggers a flight from dollar-denominated belongings,” he mentioned.

The state of affairs has reignited debate over the way forward for the greenback’s function as a world protected haven. Analysts warn that perceived erosion of Fed autonomy may weaken confidence in US belongings, probably accelerating diversification towards alternate options.

“If traders lose religion in US authorities debt and the Fed’s autonomy, decentralized belongings like Bitcoin and ‘laborious’ belongings like gold, which has already seen skyrocketing costs, change into the logical hedge in opposition to institutional decay,” he mentioned.

Arthur Hayes Says Bitcoin’s Next Rally Hinges on Dollar Liquidity in 2026

Arthur Hayes says Bitcoin could reach new all-time highs in 2026, arguing that its underperformance relative to gold and tech shares in 2025 was pushed by tight greenback liquidity relatively than weakening fundamentals.

According to Hayes, Bitcoin wants an increasing provide of {dollars} to outperform, and with out that financial gasoline, even sturdy adoption tendencies should not sufficient to push costs larger.

Optimism amongst long-term bulls additionally stays sturdy. Venture capitalist Tim Draper reiterated this week that 2026 would be a breakout year, repeating his long-standing $250,000 Bitcoin value goal.

Meanwhile, Abra CEO Bill Barhydt believes Bitcoin could benefit in 2026 as easing financial coverage injects contemporary liquidity into international markets, reviving danger urge for food after a chronic interval of tight monetary situations.

The publish Bitcoin Price Slides for Fifth Day as Risk-Off Sentiment Weighs on Prices: Analyst appeared first on Cryptonews.

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