The worldwide digital assets market showed negative indicators across the board as Bitcoin (BTC) remained near $111,000. This appeared to be the new standard following another period of instability in global markets.
The fresh retaliatory trade measuresTensions between China and the US sparked renewed risk aversion. The total cryptocurrency market capitalization slightly declined to $3.8 trillion, with a 24-hour trading volume of $200 million.
The value of Bitcoin has decreased by 10% in the last seven days, but it is still higher by 20% compared to the start of the year. Ethereum (ETH) fell by 8% over the past week. Other alternative cryptocurrencies such as XRP and Solana experienced declines of 13% and 12%, respectively.
Merchants strengthen control as Bitcoin's outlook turns negative
On-chain indicators suggest a decrease in immediate Bitcoin demand during the last seven days. According to CryptoQuant's data, spot demand has dropped by 111,000 BTC over a 30-day period. This is tracked using the Apparent Demand metric.
The report indicates that selling pressure driven by Binance seems to be a major factor. It surpassed the buying interest from other platforms. Nevertheless, there are three signals that demonstrate this pattern.Coinbase Premium, Funding Rate, and Taker Buy/Sell Ratio.
It stated that the Coinbase Premium continues to be in a positive position whileBitcoin pricehas kept on decreasing. This is typically a positive indicator, but it suggests that selling activity from Binance is taking control. Binance's Funding Rate has shown four straight days of negative values. This indicates that traders using futures on the platform are more likely to wager on short-term price declines.
On the other hand, the Taker Buy/Sell Ratio has fallen to its lowest level in more than a year. This indicates an increase in forceful selling. Although there is this temporary weakness, the fundamentals are still strong, as noted.
Bitcoin remains at a $110K foundation
Analysts highlightedthat the recent decline is more of a managed reduction in leverage rather than a panic. Last week saw over $19 billion in liquidations. This was not a widespread selling event but rather the forced closing of leveraged positions. In response, the cryptocurrency market capitalization temporarily dropped from $4.24 trillion to $3.79 trillion.
Amid all the turmoil, Bitcoin's connection to gold reached a multi-year peak of 0.9. It is strengthening its "digital goldThe narrative reflects investors' pursuit of safe-haven assets due to geopolitical tensions. Bitcoin is currently priced at an average of $111,594 as of the time of this report. Its 24-hour trading volume has decreased by 11%, reaching $72.6 billion.
Meanwhile, the Ethereum ecosystem demonstrated indicators of long-term trust. Developers conducted sophisticated testing of the Fusaka upgrade on Sepolia. Bhutanconfirmed plansTo move its national digital ID system from Polygon to Ethereum by early 2026, indicating confidence in the network. ETH is currently priced at an average of $4,045 as of the time of this report.
External macroeconomic factors, such as President Donald Trump's intensification of the trade conflict and the threat of tariffs on Chinese goods, have introduced an additional level of uncertainty.
Nevertheless, the market has thus far handled the fluctuations, as Bitcoin maintains its position within the $109,000 to $110,000 range, which has served as a foundation since August. This indicates cautious optimism among traders.
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