A BitQuant cryptocurrency analyst commented on why market participants are not buying Bitcoin and Ethereum despite recent lows. This comes amid current market weakness, with analytics platform CryptoQuant warning of a deeper decline.
Why investors aren’t buying the decline in Bitcoin and Ethereum
In Post XBitQuant noted that no one outside Saylor Strategy is buying Bitcoin at $65,000 due to reports that the US may attack Iran. He added that if this happens, many believe in it BTC will fall up to $50,000 and that’s why they don’t buy. Ethereum is expected to fall further if BTC declines.
The analyst noted that these market participants forget that Bitcoin fell from $90,000 to $60,000 without any news or headlines, and consider this nuance irrelevant. As such, he suggested that BTC and Ethereum could still see lower prices regardless The US attacks Iran.
However, BitQuant indicated that current prices don’t matter in the long run as Bitcoin and possibly Ethereum will likely see higher prices. He said many people still don’t understand it BTC is a system and that they only see it as an asset. The analyst added that for many, BTC is like a football match where they celebrate when a goal is scored and leave the stadium when there is not.
Bitcoin, Ethereum and the broader cryptocurrency market are currently facing downward pressure not only due to a potential US attack on Iran, but also due to uncertainty around Trump tariffs. The US president announced plans over the weekend to enhance the global tariff rate from 10% to 15% following the Supreme Court’s ruling against tariffs under the International Emergency Economic Powers Act (IEEPA).
BTC could still fall below $40,000
AND CryptoQuant Analysis recently suggested that Bitcoin could continue to fall below $40,000 to around $38,900, which is the basis for long-term holder (LTH) costs. The analysis also referred to historical precedent, noting that each bear market characterized by a decline in the price of BTC below its cost basis. This begins the final phase of surrender, characterized by losses of approximately 20%.
The analysis also indicated that only after this phase was the market able to rebuild the necessary foundations trend reversaland Bitcoin and Ethereum reached novel highs. Meanwhile, different CryptoQuant Analysis mentioned that the Coinbase Premium Index is showing constrained signs of recovery.
The index’s 30-minute straightforward moving average briefly broke above the zero level, but failed to maintain momentum into the novel week. CryptoQuant said this lack of sustained premium recovery, despite a momentary enhance, is considered a potential trigger for the recent bearish action.
Featured image from pngtree, chart from Tradingview.com
