BEARISH 📉 : Analysts warn Bitcoin and Ethereum may drop further amid tensions

Crypto analyst BitQuant discusses why investors are hesitant to buy Bitcoin and Ethereum despite recent price lows. The market's weakness is compounded by potential geopolitical tensions and economic uncertainties.

Key Reasons for Investor Hesitance:

Concerns over a potential U.S. attack on Iran could push Bitcoin down to $50,000, affecting Ethereum as well.
Historical context: Bitcoin previously fell from $90,000 to $60,000 without significant news.
Uncertainty around increased U.S. tariffs following a Supreme Court ruling.

Long-Term Perspective:

BitQuant argues that long-term prospects for Bitcoin and possibly Ethereum remain optimistic, viewing them as systems rather than mere assets.

Potential Further Decline:

CryptoQuant analysis suggests Bitcoin may drop below $40,000, reaching the long-term holders’ cost basis of $38,900.
Historically, bear markets have seen BTC prices fall below cost bases, leading to a capitulation phase with 20% realized losses.
The Coinbase Premium Index shows limited recovery signs, indicating potential downward pressure.

Bitcoin

This lack of sustained recovery in the premium, despite temporary increases, could be a trigger for the current price decline.