Market Analysis by David Eng, Investment Advisor, Harbourfront Wealth – Sonora Wealth Group
“Bitcoin was volatile and fell below the USD 100,000 threshold as increased market volatility prompted a shift towards safer assets, before recovering. Trade tensions between the U.S. and China have led investors to retreat from riskier assets like Bitcoin in favor of the U.S. dollar. The current uncertainty could continue to fuel volatility in the crypto market, reflecting heightened caution among institutional investors.
This conservative approach among major players is further underscored by yesterday’s outflow of over USD 234 million from Bitcoin ETFs, breaking a four-day streak of positive inflows. Additionally, liquidations of long positions outpaced short positions, placing heightened selling pressure on Bitcoin.
Despite these challenges, the cryptocurrency could continue to find support from large market players.
Coinbase has intensified lobbying efforts for regulatory clarity regarding banking services for crypto businesses, which could attract investors and increase Bitcoin demand. Furthermore, President Trump’s recent executive order to establish a sovereign wealth fund, has led to speculation about the use of Bitcoin in that fund, providing a bullish sentiment for the asset.”
