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Bitcoin managed to hold just above $60,000 after failing to hold above $65,000.
Bitcoin’s renewed weak performance comes amid renewed risk aversion amid the extremely high level of geopolitical tensions in the Middle East. Mixed data from the US also keeps the economy’s outlook uncertain, with the Fed saying it has no intention of cutting interest rates with the same pace as it did at its last meeting.
The set of negative factors was reflected in the lackluster performance of the US stock market, which has become a major influence on Bitcoin’s movements.
While caution prevails in the markets in anticipation of developments in the Middle East and more labor market data from tomorrow, Bitcoin may not renew its gains unless concerns about the US economy and those coming from the geopolitical side subside.
To make matters worse, the Securities and Exchange Commission (SEC) has appealed a court ruling that the sale of XRP to retail investors is not an unregistered securities offering, what was a huge partial victory for its developer Ripple Labs. The resurgence of the case will likely keep investors and companies in the market uncertain about regulatory risks.
All of this has put further pressure on Bitcoin, pushing it back below $65,000. The reversal has triggered waves of futures liquidation of around $830 million in the past three sessions, according to CoinGlass. The pressure has also reduced open interest in Bitcoin futures from $35.25 billion on Monday to just under $32 billion yesterday.
Over $330 million has flowed out of U.S.-based spot Bitcoin ETFs since the start of October. BlackRock’s iShares Bitcoin Trust (IBIT) also experienced its first outflow in nearly a month yesterday, a rare event, having occurred only three times since the fund’s launch in January.
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