Bitcoin Approaches $85K as DOGE and ADA Gain Over 7%
Bitcoin (BTC) approached $85,000 during European trading hours. Traders are awaiting the impact of upcoming U.S. tariffs.
- Dogecoin (DOGE) and Cardano (ADA) increased over 7%
- Ether (ETH), XRP, Solana (SOL), and BNB Chain (BNB) rose nearly 5%
- Overall market capitalization decreased by 3%, with CoinDesk 20 up 3% in 24 hours
The broader market is experiencing risk-off sentiment, as U.S. equities fell, with the S&P 500 dropping 3% last week, its worst performance since September 2023. This has led to increased investment in safe-haven assets like gold.
Market sentiment remains cautious due to the looming tariffs and lack of significant positive catalysts, such as ETF inflows. Bitcoin ended the quarter down 11%, accompanied by its largest quarterly loss since Q2 2022.
Speculative positions on bitcoin via CME are at their most bearish level in years, contrasting sharply with earlier bullish sentiment. However, data indicates resilience among long-term holders, with those holding for 3-6 months seeing increasing profits.
Newer large investors are also maintaining their positions, contributing to bitcoin's price stability.
Market analysts view the current tariff situation and economic reports as short-term challenges but maintain a long-term optimistic outlook as institutional integration of crypto continues.