Bitcoin has spent the last two weeks in a war zone; not literally, but functionally. After US and Israeli forces launched coordinated attacks on Iran on February 28, crypto markets were caught in the grip of geopolitical shock, chaos in energy prices and global risk sentiment that kept institutional faith at bay.
Now, with Trump pointing to him wants the conflict to end as soon as possible, What’s up with Bitcoin? The answer is based on available chain data and market structure, and ETF flows, for example, are as follows is already leaning positively.
Bitcoin trading under geopolitical discount
Bitcoin was already showing signs of a market that was broken before a rocket was fired, but it didn’t break. Tensions in the Middle East have had far-reaching consequences for global markets and Bitcoin was not immune from these pressures.
Bitcoin hit $74,000 in early March before returning because the news of Iran’s counter-attacks shook investors’ feelings. This price level is now the most important level that the market needs to recover and the tension is paramount an obstacle stands in the way.
However, according to report of Glassnode, the leading cryptocurrency began to recover for the most part of its metrics. Momentum has begun to recover and the RSI has moved above recent lows, but price action is still looking for strength for a decisive move. However, realized profit-to-loss ratio, provision in profit and loss and net unrealized loss (NUPL) all show slight improvements.
Could the price of Bitcoin rise soon?
It has an impact on the macroeconomic consequences of war It was about energy prices. The price of a barrel of Brent oil crude oil went up $119.50 a barrel as the conflict escalated and markets panicked above $100. A resolution to the conflict is likely to ease some of the forces currently weighing on global markets. It is expected that this, in turn, will lead to the stabilization of oil prices.
Bitcoin responds positively when macro conditions become more supportive for risk assets. Glassnode’s derivatives data shows that traders have already started positioning for a potential recovery through improving profitability metrics, increased derivatives exposure and continued ETF inflows.
Futures open interest rose 5.1% to $29.4 billion, while perpetual CVD rose 201.7% to $172.6 million, indicating strong buying activity in the perpetual futures markets.
Options markets are also showing signs of a less defensive outlook. Options open interest rose from $32.8 billion to $34.1 billion, while volatility spreads narrowed and the 25-delta curve narrowed.
ETF demand could also add to Bitcoin’s next rally as a major source of demand. Glassnode reported that weekly net inflows of the US Spot Bitcoin ETF increased from $776 million to $934 million, while the ETF’s trading volume increased from $16.0 billion to $23.1 billion.
it is interesting data from SoSoValue shows that these Spot Bitcoin ETFs have now seen three days of consecutive inflows at the time of writing.
Featured image from Pixabay, chart from Tradingview.com
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