95% of All Bitcoin Has Been Mined as Supply Nears Final Stage

Bitcoin is back under the lights of the limelight since volatility has come back this week. On Monday, the price of Bitcoin dropped to less than 64,000, raising the idea of larger market volatility. The shift followed a stint of a relatively peaceful time, where traders were optimistic that the asset had bottomed out.

The market data indicates that in the key futures exchanges there is a swift growth in the liquidations. Both short and long positions were taken unawares. The volatility has also been attributed to the changing investor sentiment and the news of geopolitical nature. Traders have become optimistic of a rough week ahead. This has been a conducive environment that has resulted in increased price volatility particularly when liquidity is liquid.

Reporters Warn of Support Retest

A number of analysts feel that the ongoing correction may become even deeper. According to them, with the selling pressure persisting, Bitcoin can retest its support at a level of about $61,000. The same support worked well when the market was falling, but the momentum is not good now.

The traders are attentively following the relative strength index. It is bordering on overselling. A turnaround would be possible in case of big buyers intervening. But the safe money holders are waiting till there is a recognized trend disclosed. There have been erratic signals in the market in the last one month. The pullback of the previous rally has been immediately succeeding each rally.

Macroeconomic Pressure Grows

Bitcoin is also moving as a result of worldwide economic changes. U.S. Federal Reserve is poised to issue new information concerning inflation this week. The risk assets may be undermined due to increased inflation. Bitcoin might not be spared. With the increasing treasury yields, institutional investors are reconsidering their own crypto exposure. Their actions are influencing the general market flows. This has impacted on price stability in the short run.

In the meantime, geopolitical pressures have caused a shift of some investors to safer assets. Bitcoin, which used to be considered as a safe-haven asset, is not performing like one this week. On-chain data shows that the wallets of whales have been activated again. It is known that these huge Bitcoin holders affect market direction. Current movement indicates build up in declivities. This may indicate trust with the long time believers.

Other analysts are of the opinion that whales are possibly ready to sell on strength. This would dampen a short run upswing. The question of the direction in which the whales lean remains unknown. In general, Bitcoin is likely to be volatile in the eyes of investors. The next few days might involve fluctuations of the price by several thousand dollars. Active traders may gain whereas passive holders may be forced to grit their teeth.