Bitcoin price is consolidating between $94,000 and $100,000. The past week saw a net outflow of $650.80 million in US Bitcoin spot ETFs, signaling weakening institutional demand. Recent macroeconomic data and Trump’s geopolitical moves are impacting the market, leaving BTC at a critical technical juncture.

Bitcoin (BTC) has experienced a period of consolidation, maintaining a price range between $94,000 and $100,000 for the past ten days. At the time of this report, the price is approximately $97,000. During this consolidation phase, US Bitcoin spot Exchange Traded Funds (ETFs) have seen a significant net outflow of $650.80 million, indicating reduced interest from institutional investors.

The trend indicates that Bitcoin is being increasingly perceived as a risk-on asset rather than a reliable store of value. Bitcoin’s correlation with the S&P 500 remains strong while its connection with Gold has weakened. Despite Bitcoin’s growth of 3.5% this year, Gold has outperformed with a rise of 9%, largely attributed to institutional purchases amidst regulatory concerns surrounding Bitcoin.

Recent macroeconomic aspects and geopolitical developments, including President Donald Trump’s initiatives for a Russia-Ukraine peace deal, have also influenced Bitcoin’s value. Following an increase in the Consumer Price Index (CPI) that aligned with market expectations, Bitcoin fell from $96,500 to $94,000 before recovering temporarily to $98,000.

Additionally, Trump’s imposition of reciprocal tariffs on foreign trading partners led to fluctuating investor confidence. Consequently, while Bitcoin’s price has been steady, it registered a decrease of 1.29% on Thursday amid this turbulent market environment.

From a technical perspective, Bitcoin has struggled to hold above the $100,000 threshold since early February. If it breaks below the support level at $94,000, the next significant target could be the psychologically important $90,000 mark. Conversely, a breakout above $100,000 might allow for a recovery toward the previous high of $106,012.

In conclusion, Bitcoin’s current state reflects consolidation amidst macroeconomic pressures, dwindling institutional demand, and ongoing geopolitical events. Investors remain cautious, with Bitcoin appearing to resonate more with market volatility than with its historical positioning as a safe haven. A break in either direction could significantly dictate future price movements.

In summary, Bitcoin’s price is currently consolidating between $94,000 and $100,000, facing challenges from dwindling institutional demand and macroeconomic influences. The asset operates under significant pressure, impacted by geopolitical events and reactive market sentiment. Investors are advised to monitor upcoming developments closely as fluctuations could pose opportunities or risks for future trading strategies.

Original Source: www.fxstreet.com

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