Bitcoin experienced a slight decline of 1.2% during the Asian afternoon hours, trading just above $27,000. Investor confidence in riskier assets was shattered due to worsening scenarios in the Hamas-Israel conflict. Traders anticipated further price decreases as investors moved away from traditional equities and risk assets in favor of gold and oil, which have both observed significant gains recently. In the past 24 hours, the crypto market slumped over 1.6%, with Ether falling 2.2% and XRP tokens leading a decline in alternative currencies with a 3% drop. While major tokens like DOT, MATIC, and XTZ also experienced slumps, Render network’s RNDR was the only large-cap token to gain, with a 3% increase.
Analysts from FxPro noted that bitcoin’s attempt to break the $28,000 level last week triggered a wave of selling, causing the price to fall back to $27,000. This profit-taking behavior suggested that investors were not yet willing to keep their money tied up in risky investments. Interestingly, this pressure on bitcoin occurred as the risk appetite in traditional markets was recovering, with Tuesday seeing gains in U.S. stocks. FxPro attributed this phenomenon to Monday’s US defaulted debt markets rather than a simple reallocation of funds from one asset to another.
In summary, bitcoin’s price dipped slightly to just above $27,000 due to worsening scenarios in the Hamas-Israel conflict, which negatively impacted investor confidence in riskier assets. Meanwhile, gold and oil prices experienced gains as investors veered away from traditional equities and risk assets. The crypto market as a whole saw a decline of 1.6% in the past 24 hours, with Ether and XRP tokens leading the drop. Despite some slumps in major tokens, Render network’s RNDR was the only large-cap token to demonstrate a 3% gain. FxPro analysts noted that bitcoin’s failure to break the $28,000 level triggered profit-taking behavior, suggesting that investors were cautious about holding their money in risky bets. The pressure on bitcoin occurred even as the risk appetite in traditional markets was recovering, potentially due to Monday’s US defaulted debt markets rather than a mere asset reallocation.
