(Bloomberg) — Bitcoin continued its decline for the fourth consecutive week as investors adopted a more cautious approach to the macroeconomic landscape.
On Tuesday, the cryptocurrency dropped by up to 3.2%, landing at $66,604, before easing off from that low. Recently, Bitcoin has mirrored fluctuations in U.S. stock markets, behaving like a high-risk technology asset, but it struggled to keep up as stocks made slight gains.
“The sentiment in the crypto market is quite negative,” noted Noel Acheson, who writes the newsletter “Crypto is Macro Now.” He pointed out that despite increased adoption by traditional finance players, this hasn’t translated into higher prices, which further dampens market sentiment.
Traders are also considering the escalating geopolitical tensions regarding Iran and the ongoing discussions about how artificial intelligence might affect the economy, extending beyond just the tech sector. The inflation data released last week has put the possibility of interest rate cuts by the U.S. Federal Reserve back in focus.
The momentum seems to be against the trend for now. U.S.-listed Bitcoin exchange-traded funds experienced net outflows for the fourth week in a row, totaling $360 million last week.
Market emotions appear fragile. On Monday, the Fear and Greed Index from CryptoQuant hit a low of 10 out of 100, indicating “extreme fear.”
“Over the last year, macroeconomic news has been closely tied to the risk profile of cryptocurrencies,” remarked Paul Howard, senior director at market maker Wincent. He anticipates some stabilization as Bitcoin looks for new factors to influence sentiment, mentioning a U.S. Supreme Court ruling on tariffs due Friday could overshadow regular Fed minutes or inflation data.
Investors are also discussing whether Bitcoin has managed to find a solid support level. Many think $60,000 is critical, but Robin Singh, CEO of crypto tax platform Coinry, suggests that this might not hold if risk appetite declines further.
“A single macro hiccup or another wave of uncertainty could easily push us down into the $50,000 range. There’s no complete capitulation here like we’ve witnessed at true market bottoms before,” Singh warned.
In recent quarter filings with the U.S. Securities and Exchange Commission, Harvard University has decreased its Bitcoin exposure, selling 1.5 million shares of the iShares Bitcoin Trust ETF (ticker IBIT). Even so, it remains one of Harvard’s largest holdings after Alphabet Inc. and gold. Additionally, Harvard has started investing in the iShares Ethereum Trust ETF (ETHA), signaling an entry into the second-largest cryptocurrency market. Meanwhile, Dartmouth College’s endowment has increased its investments in Bitcoin and Ether.
