Following Bitcoin’s euphoric rally on Sunday, where it soared close to $94,590, the leading cryptocurrency has since retreated back to levels below the $84,000 mark, reflecting a significant 10% decline within the last 24 hours. Analysts attribute this downturn primarily to the prevailing lack of positive sentiment among investors in the United States.
Ki Young Ju, the founder and CEO of the market analytics platform CryptoQuant, expresses that the Bitcoin market will likely continue to face challenges until investor sentiment improves in the U.S.
Bitcoin Market is Slow
In a previous communication, Ju pointed out that the surge in Bitcoin’s price on Sunday was largely propelled by BTC whales on Coinbase, the largest U.S. crypto exchange. This phenomenon was reflected in the Coinbase Premium Index, which spiked from -0.05 to 0.15 as Bitcoin’s value increased by nearly $10,000 within just three hours.
The rapid ascent from $85,166 to $94,590 was partly triggered by a strategic announcement from former U.S. President Donald Trump regarding the establishment of a crypto reserve, which includes Bitcoin, Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL). Prior to this rally, Bitcoin and the broader cryptocurrency market had experienced significant struggles, with Bitcoin falling to around $78,000, marking its lowest level since November 2024.
As of the latest updates, Bitcoin has wiped out all gains recorded on Sunday, trading at approximately $83,000. The Coinbase Premium Index has also regressed, dipping to -0.072—lower than its levels prior to the weekend rally.
It’s important to highlight that a high Coinbase Premium Index indicates robust demand for Bitcoin among U.S. investors, while a decline in this index suggests waning interest.
Bull Cycle Still Intact
According to Ju, while the sentiment in the market differs drastically from late last year when the Coinbase Premium Index frequently remained above 0, signs of a bull cycle appear to still be present.
He observes that despite the current market slowdown, there is no significant on-chain activity, with fundamentals remaining strong and key indicators exhibiting neutrality. Furthermore, an increase in Bitcoin mining rigs indicates that miners are not capitulating, though concerns linger regarding the potential end of this bull market cycle.
“If the cycle ends here, it’s an outcome no one wanted—not old whales, mining companies, TradFi, or even Trump. (FYI, the market doesn’t care about retail),” Ju remarked.
This analysis underscores the complexities within the Bitcoin market, highlighting not only the current challenges but also the potential paths forward as sentiment evolves. It remains to be seen how external factors, including investor interest and market dynamics, will shape the future of Bitcoin and its standing in the broader financial landscape.
To read more about why the Bitcoin market is currently stalled, check out the full piece here.
