Traders on Binance, the price of Bitcoin has fallen to around $94,000. Previously, approximately $1 billion worth of Bitcoin flowed into exchanges, a typical warning signal indicating that sellers may be preparing to cash out, becoming one of the triggers for another decline in Bitcoin's price. On Sunday, Bitcoin fell again, with market sentiment fluctuating. Although Bitcoin has dropped below $100,000, cryptocurrency news flash (CNF) pointed out that its structure and market sentiment still lean towards bullish.
However, the intention of some investors to take profits may be a key reason for the current downtrend. Some market analysts mentioned that cryptocurrency investors believe the US-China trade agreement is good news for Bitcoin. Easing tariffs could improve market risk sentiment, stabilize liquidity, and reduce dollar volatility. As panic subsides, speculative funds may flow back into Bitcoin, which could offset short-term bearish sentiment. A relaxation in geopolitical tensions could also boost overall market confidence, alleviate retail investors' FOMO, and drive a market rebound. However, large transfers of Bitcoin to exchanges typically indicate that major holders (whales) are preparing to sell.
Short-term and long-term impact on the market
Short-term impact
Bitcoin's pullback has put pressure on the entire market, with XRP significantly affected, having fallen below $2.45 and maintaining a correlation with Bitcoin above 0.8, moving almost in sync. Over $1 billion in Bitcoin has flowed into exchanges, exacerbating liquidation pressure, which is part of last week's $1.8 billion market cap evaporation, with investors turning to safer assets like gold.
Long-term impact
In the long run, the situation may change. U.S. Treasury officials say a U.S.-China trade agreement may be reached before Thanksgiving, which could be beneficial for globally payment-related assets. Ripple's ODL network is expected to reach a transaction volume of $30 billion by 2025, and if tariffs are reduced and remittance channels become more efficient, it is likely to benefit. Historical patterns show that easing geopolitical tensions reduces dollar volatility, which is favorable for the recovery of altcoins. CoinDCX predicts that if Bitcoin prices stabilize and ETF demand rebounds, altcoin prices will also rise.
As of now, the trading price of Bitcoin (BTC) is approximately $94,926.65, down 0.38% in the past day and down 10.74% in the past week. This trend in Bitcoin reflects its ongoing sensitivity to capital inflows and changes in the macroeconomic environment, which may affect its short-term trends. Please refer to the Bitcoin price chart below.
