Bitcoin hovers around $65,000 as risk sentiment wipes out midweek gains

Bitcoin is hovering around the $65,000 mark as risk sentiment in the crypto market erased all midweek gains. The cryptocurrency was trading at $65,030.In the past 24 hours, Bitcoin and Ethereum have fallen by 3.80% and 6.73% respectively. Among the major altcoins, XRP, BNB, Solana, tron, Dogecoin, Cardano and Hyperliquid are down 8%.

Also read | Flexi-cap, mid-cap, small-cap and gold ETF. Is this a balanced mutual fund portfolio for young investors?According to CoinMarketCap, the global crypto market capitalization fell 2.57% to $3.07 trillion.Nischal Shetty, founder of WazirX, said Bitcoin is currently trading around $65,000 after briefly moving higher earlier this week. At this point, it seems unlikely that rate cuts will cause investors to pin their hopes on a factor that will drive bullishness.

Shetty further said that at the same time, widening credit spreads and weakness in private equity markets indicate caution in global financial markets.

Over the past week, Bitcoin and Ethereum fell 4.89% and 4.14% respectively. Among the major altcoins, BNB, XRP, Solana, Tron, Dogecoin, Cardano and Hyperliquid fell up to 12%. Riya Sehgal, research analyst at Delta Exchange said crypto markets are showing tactical stability but remain structurally vulnerable and Bitcoin continues to consolidate around $66,000 within a well-defined range of $63,000-$71,000 as rising foreign exchange reserves and positive net inflows indicate continued supply pressure.Sehgal further said Ethereum reflects deeper stress, with negative taker volumes confirming liquidation-induced declines towards the $1,850 bottom and a sustained break above $2,150 would be essential to restore bullish momentum.

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According to Binance Research’s Weekly Market Insights, despite the challenging macro and sentiment environment, multiple indicators are converging to suggest the crypto market is at or near a structural low.

Macro data has mattered less lately as markets are fixated on “AI disruption” – especially in software, the hardest-hit segment. When that sector finally bottoms out and rebounds, it could eliminate one of the biggest headwinds for crypto, according to the Weekly Market Insights.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)