Do. Apr 18th, 2024

• Bitcoin (BTC) is back to its range after a failed attempt to reclaim previously lost territory.
• The crypto market has seen a weak price action in 2023, but BTC has been notably more fragile than other digital assets.
• Market participants have been „hesitant“ to jump into the current price action due to ambiguity around macroeconomic conditions, as well as the crisis between Gemini and the Digital Currency Group (DCG).

Bitcoin (BTC) has recently gone through a difficult period in its price action, with the digital asset failing to reclaim previously lost territory. The crypto market has seen a weak price action over the past year, but BTC has been notably more fragile than other digital assets. This has led to a sideways movement in the last 24 hours, with the asset currently trading at $16,800 with only a 1% gain in the previous seven days.

On the other hand, Ethereum (ETH), Cardano (ADA), Litecoin (LTC), and others have seen gains north of 6% and 12% over the same period. This disparity further highlights Bitcoin’s fragility in the current market.

The derivatives sector might provide more clues about price expectations. According to a recent report from crypto exchange Deribit, expectations of a spike in volatility due to the New Year have decreased, and market participants have been „hesitant“ to jump into the current price action due to ambiguity around macroeconomic conditions. The crisis between Gemini and the Digital Currency Group (DCG) has also added fuel to this sentiment, as DCG owns crypto lender Genesis, which owes Gemini Earn customers billions of dollars. If the first of these companies decides to liquidate one of their products to pay off their debt, the price of Bitcoin and other cryptocurrencies could trend to the downside.

In conclusion, the current market state does not bode well for Bitcoin’s price action, as the digital asset has been notably more fragile than other digital assets. Furthermore, market participants’ hesitance to enter the current market, as well as the crisis between Gemini and DCG, further adds to the uncertainty. While BTC might be able to reclaim its previously lost territory in the near future, its fragility in the current market makes this a risky bet.

Von admin