Bitcoin is hovering near $69,700 as market volume shrinks to $111 billion. What experts say

Bitcoin fell to $69,700 on Tuesday, as 24-hour trading volume fell sharply from over $300 billion to almost $111 billion. The cryptocurrency was trading at $69,678.In the past 24 hours, Bitcoin and Ethereum are down 2%. Other altcoins, such as XRP, BNB, Solana, Tron, Dogecoin, Cardano and Hyperliquid fell more than 6%. According to CoinMarketCap, the global cryptocurrency market cap fell 1.57% to $2.38 trillion.

Also read | Silver ETFs have returned a XIRR of 62% since launch, surpassing the 42% of gold ETFs. Do allocation strategies need to change?According to the CoinDCX Research Team, Bitcoin is maintaining a horizontal consolidation, hovering around $70,000 with minimal bullish and bearish impact. Overall market sentiment remains scary but is trying to stabilize. Akshat Siddhant, Lead Quant Analyst at Mudrex, said Bitcoin remains strong as whales and institutional investors step in to buy the dip. Since Friday, large holders have accumulated more than 40,000 BTC, helping to stabilize prices, while Strategy has added 1,142 BTC worth about $90 million, showing long-term institutional confidence.

Over the past week, Bitcoin and Ethereum fell by 11.76% and 12.25% respectively. Meanwhile, XRP, BNB, Solana, Tron, Dogecoin, Cardano and Hyperliquid fell more than 19%.

Vikram Subburaj, CEO of Giottus, said this decline has wiped out leveraged positioning and dragged broader sentiment into ‘risk-off’ mode. The recovery was reactive rather than exuberant. What other experts sayCoinSwitch markets bureau

BTC continues to hover between $68,000 and $71,000 and is consolidating as traders remain cautious due to overall bearish sentiment and a lack of near-term catalysts. The markets appear to be waiting for cues from other assets before capital returns to BTC.

Riya Sehgal, Research Analyst, Delta Exchange

Outflows from digital asset products eased to $187 million last week, indicating moderating selling pressure amid cautious sentiment. Macro factors, US CPI data and Fed policy signals will shape near-term sentiment, while extreme fear metrics and rising on-chain activity suggest conditions for a medium-term recovery remain intact.

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Nischal Shetty, Founder, WazirX

While Bitcoin held a level of $70,000 yesterday, the token took a dip over the past 24 hours, reaching $69,000 as investors worldwide show a lack of confidence in risky assets, at least in the short term.

Crypto experts, with historically longer exposure to digital assets, remain optimistic about Bitcoin’s long-term potential, citing current volatility with similar downsides previously seen in the market. However, the cryptocurrency has overcome these drawbacks in the past and continues to reach new highs.