Bitcoin Enters Choppy Phase as Market Sentiment Cools
After peaking near $74,000 on Wednesday, Bitcoin slid nearly 3.4% to around $68,000 by Saturday, continuing a familiar weekend trend of profit-taking and subdued trading. Despite the pullback, the leading cryptocurrency still posted a marginal weekly gain, reflecting cautious balance between bulls and bears.
Nearly Half of Supply in Loss, Creating Headwinds for Recovery
Chain analytics firm Glassnode reports that approximately 43% of Bitcoin’s circulating supply is currently underwater—purchased at prices higher than today’s levels. This creates a wall of potential selling pressure during any attempted rebound, as long-term holders may exit at breakeven.
Stablecoin Inflows Signal Dry Powder Ahead
A sharp increase in stablecoin transfers to exchanges and wallets suggests significant liquidity is being positioned off the sidelines. These funds, held in low-volatility digital dollars, could flow back into Bitcoin quickly if confidence returns or macro conditions shift favorably.
Strong Dollar and Geopolitics Weigh on Risk Appetite
The U.S. dollar surged this week, posting its largest weekly gain in over a year, driven by expectations of higher-for-longer interest rates. This strength has dampened appetite for speculative assets globally. Meanwhile, ongoing Middle East tensions have boosted safe-haven demand, further pressuring crypto markets.
- Bitcoin struggles near $70K, facing technical and macro headwinds
- High percentage of underwater holders may limit near-term upside
- Rising stablecoin activity hints at latent buying power
- Monetary policy and global risks remain key drivers in the weeks ahead