Bitcoin (BTC) has experienced a significant drop of 12.6% this week, marking the largest decline since the FTX bankruptcy in November 2022. The sell-off can be attributed to investor disappointment over the lack of action from President Donald Trump's administration on creating a national BTC reserve. Institutional demand for BTC and ether (ETH) has weakened, causing the CME futures market to move closer to backwardation. The Wall Street tech-heavy index, Nasdaq, has also come under pressure. The upcoming U.S. core Personal Consumption Expenditures (PCE) index is not expected to put a floor under risk assets. Markets may view the expected decline in the PCE as a sign of economic weakness. However, there is potential for bitcoin to find support due to its dual appeal as a risk asset and a safe haven similar to digital gold. Technical analysis suggests that if BTC breaks below the range of $90K-$110K, it could slide to $70,000. BTC has currently bounced back to around $86,000, testing a demand zone at $82,000. There are predictions that BTC could decline to $82,000 before stabilizing.



Other News from Today