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Geopolitical Uncertainty Puts Bitcoin under Pressure, $100M in Liquidations

Summary:
Despite the selling pressure, Bitcoin has outperformed the broader crypto market with its market share crossing over 50%. Bitcoin and the broader cryptocurrency market have come under selling pressure amid rising geopolitical uncertainties and a recent war eruption between Israel and Palestine. The developments led to more than 0 million in bull call liquidations in futures positions. Also, the broader cryptocurrency market slid by a staggering 2%. Interestingly, in comparison to other tokens, Bitcoin has shown greater resilience. The BTC price is hovering around ,675 with little volatility and a market cap of 9 billion. Analysts at trading firm FxPro said: “Technically, Bitcoin remains in an uptrend but ran into resistance at its 200-day moving average over the

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Despite the selling pressure, Bitcoin has outperformed the broader crypto market with its market share crossing over 50%.

Bitcoin and the broader cryptocurrency market have come under selling pressure amid rising geopolitical uncertainties and a recent war eruption between Israel and Palestine. The developments led to more than $100 million in bull call liquidations in futures positions. Also, the broader cryptocurrency market slid by a staggering 2%.

Interestingly, in comparison to other tokens, Bitcoin has shown greater resilience. The BTC price is hovering around $27,675 with little volatility and a market cap of $539 billion. Analysts at trading firm FxPro said:

“Technically, Bitcoin remains in an uptrend but ran into resistance at its 200-day moving average over the weekend. All eyes will be on BTCUSD to see if it can successfully consolidate above $28,000, the 200-day moving average. If it does, we can expect a quick rise to as much as $29,500.”

However, on the short-term technical chart, Bitcoin has shown a breakdown under the symmetrical triangular pattern. The next support stands at $26,200.

Bitcoin Market Share above 50% amid Selling Pressure

As said, Bitcoin has performed relatively well in comparison to other top ten altcoins, including Ethereum. In another market development, Ethereum’s native cryptocurrency, Ether, experienced a 3% decline as the Ethereum Foundation executed a sale of tokens worth $2.7 million on Monday.

This move raised apprehensions among traders, and its impact was evident in the ETH futures markets. Ether bulls incurred losses exceeding $30 million on Monday, surpassing losses by traders in other cryptocurrencies.

As Ethereum is ceding ground, Bitcoin’s market share in the broader crypto market has shot past 50%. Ether, the second-largest cryptocurrency by market capitalization, has faced a substantial decline of approximately 18% since June. In contrast, Bitcoin, the leading cryptocurrency, saw a comparatively smaller decrease of around half that amount during the same period.

When considering the year as a whole, Bitcoin has exhibited remarkable growth, with a 66% increase in its value. In contrast, Ether’s performance registers a 32% increase.

Notably, this discrepancy becomes even more pronounced when analyzing data from September 15, 2022, when Ethereum underwent a network upgrade known as the Merge. This event generated significant anticipation and uncertainty among investors for several months. The latest research report from Kaiko notes:

“In fact, Ether has been massively underperforming the broad market since the Merge, with both the ETH/BTC price and volume ratio trending downwards over the past year. Ether’s underperformance is likely due to the ongoing impact of the bear market, which historically has seen traders turn to Bitcoin.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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