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The leading cryptocurrency Bitcoin (BTC) fell to the $100,000 level due to the tension between US President Donald Trump and Tesla CEO Elon Musk.
However, after the waters between Trump and Musk calmed down, BTC held on to the $105,000 level and is consolidating within a certain range.
Despite the tension, while expectations for an increase continue, analysts said that Bitcoin is holding on at a certain level but is structurally unstable and fragile.
HashKey Eco Labs CEO Kay Lu said that BTC is currently trading in a sensitive area with significant support. Lu noted that all it takes is one bearish news event for Bitcoin to suddenly crash and trigger panic selling.
Dominick John, an analyst at crypto trading firm Kronos Research, also noted that the market remains in a wait-and-see mood.
Noting that the Crypto Fear and Greed Index is at 55, John added that a macro trigger event or a possible uptrend needs to be confirmed for the rise.
At this point, he said that the US Consumer Price Index (CPI) and Producer Price Index (PPI), which are scheduled to be published this week, will determine the near-term direction of Bitcoin and altcoins.
Finally, Presto Research Analyst Min Jung also said that the short-term volatility of Bitcoin and altcoins will be shaped depending on macroeconomic developments in the coming period.
“We could see increased volatility in the middle of the week… Any upside surprises in both CPI and PPI calendar and inflation data could impact risk assets in general, including crypto.”
*This is not investment advice.
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