Bitcoin (BTC) Faces First Major Correction Amid Economic Strains
The post Bitcoin (BTC) Faces First Major Correction Amid Economic Strains appeared on BitcoinEthereumNews.com. Zach Anderson Jun 03, 2025 03:48 Bitcoin experiences a significant correction after a 50% surge, while macroeconomic pressures and trade tensions influence market dynamics, according to Bitfinex Alpha. Bitcoin (BTC) is experiencing its first significant correction since the lows of April, according to Bitfinex Alpha. The digital currency’s price cooled off after a substantial 50% surge that propelled it to a new all-time high of $111,880. This correction follows nearly 50 days of consistent upward movement with minimal setbacks. Market Dynamics and Economic Pressures The current market pullback is attributed to a shift in momentum, coinciding with renewed macroeconomic pressures. The unexpected reinstatement of tariffs by the US government has led to a surge in 30-year Treasury yields above 5%, triggering a risk-off sentiment across markets. This economic backdrop has influenced Bitcoin’s trajectory, as well as its derivatives markets, which are showing signs of overheating. Options open interest has reached an all-time high of $49.4 billion, highlighting increased institutional activity and a rise in hedging and speculation. This indicates market expectations of heightened volatility, potentially driven by further macroeconomic headwinds and profit-taking. Technical Indicators and Market Sentiment On-chain metrics, such as the Relative Unrealised Profit indicator, suggest that Bitcoin is in a historically euphoric zone that often precedes sharp market swings. Despite the pullback, Bitcoin’s structural integrity remains strong, with the correction likely serving as a healthy reset rather than a breakdown. Meanwhile, the US economy is grappling with challenges, including trade tensions, cooling consumer demand, and policy uncertainty. Consumer spending has slowed, with households prioritizing savings over discretionary purchases. Although inflation remains subdued, businesses are beginning to pass on higher costs from tariffs, which could change the inflation landscape. Shift in Trade Dynamics and Corporate Caution Trade dynamics have shifted significantly, with imports falling nearly 20% in April, following…
The post Bitcoin (BTC) Faces First Major Correction Amid Economic Strains appeared on BitcoinEthereumNews.com.
Zach Anderson Jun 03, 2025 03:48 Bitcoin experiences a significant correction after a 50% surge, while macroeconomic pressures and trade tensions influence market dynamics, according to Bitfinex Alpha. Bitcoin (BTC) is experiencing its first significant correction since the lows of April, according to Bitfinex Alpha. The digital currency’s price cooled off after a substantial 50% surge that propelled it to a new all-time high of $111,880. This correction follows nearly 50 days of consistent upward movement with minimal setbacks. Market Dynamics and Economic Pressures The current market pullback is attributed to a shift in momentum, coinciding with renewed macroeconomic pressures. The unexpected reinstatement of tariffs by the US government has led to a surge in 30-year Treasury yields above 5%, triggering a risk-off sentiment across markets. This economic backdrop has influenced Bitcoin’s trajectory, as well as its derivatives markets, which are showing signs of overheating. Options open interest has reached an all-time high of $49.4 billion, highlighting increased institutional activity and a rise in hedging and speculation. This indicates market expectations of heightened volatility, potentially driven by further macroeconomic headwinds and profit-taking. Technical Indicators and Market Sentiment On-chain metrics, such as the Relative Unrealised Profit indicator, suggest that Bitcoin is in a historically euphoric zone that often precedes sharp market swings. Despite the pullback, Bitcoin’s structural integrity remains strong, with the correction likely serving as a healthy reset rather than a breakdown. Meanwhile, the US economy is grappling with challenges, including trade tensions, cooling consumer demand, and policy uncertainty. Consumer spending has slowed, with households prioritizing savings over discretionary purchases. Although inflation remains subdued, businesses are beginning to pass on higher costs from tariffs, which could change the inflation landscape. Shift in Trade Dynamics and Corporate Caution Trade dynamics have shifted significantly, with imports falling nearly 20% in April, following…
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