Bitcoin's Price Drops Over 5% in 24 Hours as Middle East Turmoil Sparks Investor Caution

Bitcoin’s value has declined by over 5% over the past 24 hours, with the token currently priced at around $63,300, according to data from CoinMarketCap. This drop follows a fluctuating trend, with the token’s value plummeting from a high of $63,575 on April 24.

The recent price movement of Bitcoin is not just a result of market dynamics, but also influenced by external factors. In this case, renewed tensions in the Middle East have played a significant role. Historically, such geopolitical events have prompted investors to seek refuge in safe-haven assets like Bitcoin, thereby impacting its price dynamics.

In parallel, spot Bitcoin ETFs in U.S. markets saw net outflows at the close of trading on April 24, 2024. Data from Farside shows that withdrawals from the Grayscale Bitcoin Trust (GBTC) fund accounted for a significant amount of the inflows. Notably, BlackRock’s iShares Bitcoin Trust Fund (iBIT) ended its streak of 71 days of recording inflows. The fund recorded zero inflow for the trading day.

Observing the sentiment in the crypto market, trading firm QCP Capital noted a shift in sentiment on lower timeframes, indicating expectations of limited upside potential and a probable short-term consolidation phase.

CoinGlass reported an increase in liquidity on both ends of the spot price across various crypto exchanges. Notably, a substantial cloud of asks emerged, ranging from $64,765 to $67,700, totalling around $75 million. Conversely, bid interest was relatively modest, primarily at $63,500, marking the local low.

Popular trader Daan Crypto Trades highlighted the “healthy” funding rates as a basis for a gradual price recovery for Bitcoin. He advised against aggressive trading strategies, emphasizing the importance of maintaining a solid base for higher prices.

“Keep it this way as we grind up and we should have a solid base for higher. Don’t want to see longs ape back in on the next best green candle,“ he wrote as part of a commentary post on X.

Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.