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coinpedia 2025-02-12 14:20:06

Crypto Market on Edge as Bitcoin Struggles Near $94K Amid Economic Uncertainty

The post Crypto Market on Edge as Bitcoin Struggles Near $94K Amid Economic Uncertainty appeared first on Coinpedia Fintech News The crypto market is facing a rough patch, with Bitcoin facing turbulent price action as global economic shifts and U.S. monetary policies create uncertainty across financial markets. Analysts suggest that a divide between institutional investors and retail traders is contributing to the recent volatility. Retail Panic vs. Institutional Confidence According to analysts at Bitwise, the current Bitcoin market tells two very different stories. On one side, retail investors appear deeply concerned, reacting to price swings with panic selling. On the other, institutional players see an opportunity, to buy Bitcoin aggressively. “Retail sentiment is bad in crypto right now, and to me, that signals opportunity,” Bitwise noted, suggesting that institutional accumulation could be a bullish sign for the market. Tariffs Add to Market Uncertainty The latest market turbulence comes as the Trump administration imposed a 25% tariff on all steel and aluminum imports, alongside new levies on Canadian, Mexican, and 10% on Chinese goods. Therefore, analysts at QCP Capital believe these trade restrictions are fueling uncertainty, impacting both traditional and digital markets. Weaker Dollar Fueling Fire Adding to the tension, Federal Reserve Chair Jerome Powell reinforced the Fed’s “wait-and-see” approach to interest rate cuts, suggesting a slower pace in 2025. However, despite the Fed’s hawkish stance, the U.S. Dollar Index (DXY) has weakened, falling 1.54% in the past month. A declining dollar typically supports Bitcoin, but a tight monetary policy could limit liquidity, creating mixed signals for investors. Bitcoin’s Next Move: Breakout or Breakdown? As of now, Bitcoin is trading at $94,672 , down 3% in the last 24 hours. The Relative Strength Index (RSI) has fallen below 50, showing weakening bullish momentum, while the 200-day moving average (MA) at $92,000 is acting as a crucial support level. The market is now at a tipping point. If Bitcoin breaks above $98,500, it could trigger a rally toward new highs. But if it drops below $94,000, we might see another dip toward $90,000 or lower.

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