Bitcoin‘s value remains around $97,700, heavily impacted by declining performance in U.S. markets. The altcoin sector is also facing significant challenges, with traders finding it difficult to hold their ground in a diminished market atmosphere. Recent remarks from market stakeholders have intensified feelings of uncertainty among altcoin traders, leading to a reassessment of the prevailing market climate.
Will Bitcoin Experience Further Declines?
Currently fluctuating near $97,250, Bitcoin is not offering support to altcoins during its minor recoveries, instead dragging them down further. A recent analysis by TheFlowHorse indicates that those betting on a price rebound may be overly optimistic. Should their findings prove accurate, Bitcoin could undergo a substantial correction, reminiscent of the market collapse in 2020 that significantly affected altcoins.
How Are U.S.-China Trade Relations Affecting Bitcoin?
As the week concludes, anticipated dialogues between U.S. and Chinese leaders may not yield the hoped-for resolutions. Recent aggressive moves from China have dampened optimism, reflected in Bitcoin’s fluctuating price. Notably, U.S. imports from China have decreased, now representing only 13.5% of total imports, the lowest level seen in over two decades.
– Bitcoin’s network activity is at a year’s low, down by 15% since November 2024.
– Daily transactions have dropped to 346,000 from 734,000 in September.
– The mempool reflects a 99% decrease in pending transactions since late last year.
– Bitcoin’s fair value is projected between $48,000 and $95,000, indicating potential overvaluation.
The current landscape suggests that trade tensions may not pose as dire a threat as once thought. Concurrently, Mexico’s share of U.S. imports has climbed to 15.5%, and Canadian imports have surged to a ten-year peak of around 13.5%.
