Bitcoin (BTC) has been on a downward trend since reaching $48,000 in late March, with support levels widening, now potentially pointing towards $8,000 as the next logical price level. Traders are feeling uneasy about potential regulation and market contagion.
The Financial Stability Board (FSB) has hinted at upcoming recommendations for the crypto sector, causing uncertainty among investors. Concerns have mounted following losses in crypto lending platforms like Celsius and Voyager Digital, with unresolved claims against Three Arrows Capital adding to the unease.
Market indicators such as the CME’s Bitcoin futures contracts premium show a red flag with a lingering bearish sentiment. Additionally, traditional asset correlations and macroeconomic fears are making investors cautious about trading cryptocurrency.
Despite some increase in long positions by top traders, the market remains cautious. Regulatory pressures and economic uncertainties are keeping traders alert, with Bitcoin’s correlation with traditional assets still a significant factor in investment decisions. It seems that a wait-and-see approach is prevailing among professional traders in the current market climate.