Key Points
- Bitcoin (BTC) price suffered a 5% dip due to geopolitical news on April 25.
- Despite the dip, traders expect a slow and steady BTC price recovery.
On April 25, Bitcoin (BTC) experienced a decline in trading value, with its price falling by up to 5% due to a sudden reaction to geopolitical news.
The BTC price was observed to be attempting to form a support at $64,000 before the start of Wall Street trading. This came after a dip to $63,575 at the previous day’s close, a result of increased Middle East tensions.
Market Reactions
CoinGlass, a cryptocurrency monitoring platform, reported increased liquidity on both sides of the spot price across crypto exchanges on the same day. A significant volume of asks had appeared, starting with around $75 million at $64,765 and scaling up to $67,700. Conversely, there was modest bid interest centered on $63,500 — the local low.
Bitcoin managed to fill one of the two recently-created CME Group futures gaps with its latest dip. Popular trader Daan Crypto Trades emphasized the “healthy” state of funding rates as a foundation for a slow but steady BTC price recovery in the future.
Crypto Sentiments and ETF Flows
Trading firm QCP Capital noted a shift in crypto sentiment on low-timeframes in its latest “New York Color” market updates. The firm stated that the market anticipates the upside to be limited and expects the spot price to consolidate in the short term.
Meanwhile, the United States’ spot Bitcoin exchange-traded funds (ETFs) saw net outflows on April 24, largely driven by outflows from the Grayscale Bitcoin Trust (GBTC). In a rare occurrence, the largest ETF offering from asset manager BlackRock recorded zero inflows.
Spot ETFs are set to commence trading in Hong Kong on April 30, marking another milestone for Bitcoin institutional adoption.
