Bitcoin Bear Market May Last 90 Days Amid Trade War Concerns and Potential Recovery Signals

Sentiment Analysis: Retail Traders and Long-term Holders

Research from Nansen outlines that a significant portion of retail investors is currently entrenched in their BTC positions, leaving limited room for new capital influx. This reality adds another layer of complexity to the crypto market, where the return of bullish retail sentiment is crucial for driving prices upward. The persistence of predominant long-term holders indicates a cautious optimism, but market analysts note that fresh investments are essential for a definitive recovery.

Withdrawal of Risk Appetite in Market Indicators

Additionally, the underlying economy’s performance and forthcoming negotiations may serve as pivotal points for the cryptocurrency market. According to expert analysis, pressures related to tariffs could persist until April 2025, when potential agreements might stabilize market expectations. This uncertainty has contributed to a slowdown in trading activity, reflected in the consistent decline of the Glassnode Hot Supply metric.

Conclusion

In summary, the impact of global trade disputes on cryptocurrency markets is substantial and multifaceted. With Bitcoin navigating through a testing phase shaped by external economic pressures, investors remain alerted to shifting dynamics. As volatility continues in both traditional and digital markets, maintaining a strategy that hedges against potential downturns could be crucial for portfolio resilience. As we look ahead, the intersection of economic policy and cryptocurrencies will play a vital role in shaping market direction.