Crypto crash: massive liquidations and regulatory deadlock weaken Bitcoin

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The cryptocurrency market is going through a delicate period. Bitcoin (BTC) is retreating amid a confluence of bearish factors, including massive liquidations in the market and a persistent regulatory deadlock concerning digital assets. The fear and greed index has plunged into negative territory, reflecting increasing risk aversion among investors.

Currently, Bitcoin is trading around $92.02K, with a slight upward movement of +0.52% over 24 hours, but this modest rebound does not erase broader concerns about the market’s direction.

The decline in cryptocurrencies occurs in a context where several buying drivers have weakened. Institutional acquisitions are slowing down, while global geopolitical uncertainties systematically reduce investors’ appetite for risky assets. Meanwhile, the tech sector, especially AI, is experiencing notable underperformance, amplifying the flight to safer assets.

MicroStrategy, long a symbol of corporate Bitcoin adoption, is not immune to this downward dynamic. Its price is falling under the weight of fears regarding potential dilution of shares, fueled by its ongoing Bitcoin acquisitions in this uncertain environment.

Meanwhile, gold is approaching its all-time high levels as investors massively seek refuge in traditionally safe assets. This divergence between Bitcoin and gold perfectly illustrates the shift in market sentiment: where cryptocurrencies are seen as risky assets, precious metals are regaining their status as stability in portfolios.

BTC3,39%
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