btc almost hit 74k then dumped 110 billion in market cap…
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btc almost hit 74k then dumped 110 billion in market cap because iran happened
Bitcoin was doing pretty good earlier this week, like really good. it pushed toward 74k and everyone was getting hyped about all the institutional stuff happening. morgan stanley partnered with bank of new york mellon for btc etf custody, kraken got access to the fed's payment system, ICE (the guys who own nyse) threw money at okx and valued it at 25 billion. even trump said banks should work with crypto. any of these would've sent btc to the moon back in 2020 or 2021 probably.
But nope. by friday btc was back under 69k and lost 110 billion in market cap. wild.
The main reason? iran. trump basically said there's gonna be no deal with iran, oil prices spiked, inflation fears came back, and the dollar got stronger. when that happens everything risky gets sold off. stocks went down, and crypto followed because it's basically trading like a tech stock now. also blackrock started limiting withdrawals from their 26 billion private credit fund which didn't help the vibe at all.
Here's the thing though, macro stuff matters way more than crypto news now. btc is correlated with nasdaq and other risk assets because hedge funds and etfs treat it like just another portfolio piece. when the dollar rallies or interest rates shift, liquidity dries up everywhere including crypto. kinda ironic that the institutional adoption everyone wanted is now making btc move with traditional markets instead of on its own.
Who sold? mostly short term holders who bought recently. cryptoquant data shows they moved over 27k btc (1.8 billion) to exchanges in the last 24 hours to take profits when it hit 74k. these are the traders not the long term hodlers. they got spooked by the iran stuff and macro uncertainty. with thin liquidity their selling actually moves the price a lot.
But it's not all bad. spot bitcoin etfs had 787 million in net inflows last week which is the first positive week since mid january. some big university endowment funds said they're looking at digital asset etfs now because traditional equities are too expensive. also bitcoin funding rates dropped to lowest since 2023 which means leveraged longs got flushed out. historically that's when more sustainable rallies can start.
Some people called the 74k rally a bull trap and honestly with how this week went they might be right. you can use MEXC AI to track these macro trends if you're trying to figure out what's next. thin liquidity plus macro headwinds plus no clear catalyst equals choppy price action for now. just gotta wait and see i guess.
#cryptocurrency
Bitcoin was doing pretty good earlier this week, like really good. it pushed toward 74k and everyone was getting hyped about all the institutional stuff happening. morgan stanley partnered with bank of new york mellon for btc etf custody, kraken got access to the fed's payment system, ICE (the guys who own nyse) threw money at okx and valued it at 25 billion. even trump said banks should work with crypto. any of these would've sent btc to the moon back in 2020 or 2021 probably.
But nope. by friday btc was back under 69k and lost 110 billion in market cap. wild.
The main reason? iran. trump basically said there's gonna be no deal with iran, oil prices spiked, inflation fears came back, and the dollar got stronger. when that happens everything risky gets sold off. stocks went down, and crypto followed because it's basically trading like a tech stock now. also blackrock started limiting withdrawals from their 26 billion private credit fund which didn't help the vibe at all.
Here's the thing though, macro stuff matters way more than crypto news now. btc is correlated with nasdaq and other risk assets because hedge funds and etfs treat it like just another portfolio piece. when the dollar rallies or interest rates shift, liquidity dries up everywhere including crypto. kinda ironic that the institutional adoption everyone wanted is now making btc move with traditional markets instead of on its own.
Who sold? mostly short term holders who bought recently. cryptoquant data shows they moved over 27k btc (1.8 billion) to exchanges in the last 24 hours to take profits when it hit 74k. these are the traders not the long term hodlers. they got spooked by the iran stuff and macro uncertainty. with thin liquidity their selling actually moves the price a lot.
But it's not all bad. spot bitcoin etfs had 787 million in net inflows last week which is the first positive week since mid january. some big university endowment funds said they're looking at digital asset etfs now because traditional equities are too expensive. also bitcoin funding rates dropped to lowest since 2023 which means leveraged longs got flushed out. historically that's when more sustainable rallies can start.
Some people called the 74k rally a bull trap and honestly with how this week went they might be right. you can use MEXC AI to track these macro trends if you're trying to figure out what's next. thin liquidity plus macro headwinds plus no clear catalyst equals choppy price action for now. just gotta wait and see i guess.
#cryptocurrency
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