Crypto Slumps, Economic Uncertainty a Trigger
The cryptocurrency market experienced a decline in the European session on Tuesday, with Bitcoin (BTC) trading below $104,000 and Ethereum (ETH) falling below $3,500, or around 2.9%. This decline was triggered by negative sentiment in global markets, influenced by widespread economic uncertainty. Disappointing economic data from the global manufacturing sector added to market anxiety, prompting investors to exercise caution and avoid higher risks, including crypto.
The strengthening of the US dollar also acted as a major pressure factor for cryptocurrencies, which typically move inversely to the dollar. A stronger dollar makes crypto, which is traded in dollars, more expensive for foreign investors, reducing the attractiveness of digital assets. Furthermore, investors are increasingly focused on the Federal Reserve's interest rate policy and potential monetary tightening, adding to uncertainty about the short-term direction of the crypto market.
However, despite the weakening crypto prices, geopolitical tensions and economic uncertainty continue to support crypto as an alternative asset. Some analysts remain optimistic that crypto can recover as uncertainty increases and investors seek safe haven assets. Further monitoring of regulatory policies and developments in the global crypto market will be key to predicting further price movements.
Source: Newsmaker.id
