The crypto market faced declines, with XRP and Ether leading losses as Bitcoin struggles to stay above $65,000 amid inflation concerns.
Bitcoin Faces Resistance Above $65,000 Amid Rising Inflation Concerns
Bitcoin has struggled to maintain its value above $65,000 for the fourth consecutive day, dipping to around $64,000 as rising oil prices heighten inflation worries ahead of the upcoming U.S. inflation report on Wednesday.
Despite this, Bitcoin remains slightly up for the week, although market sentiment is generally weak. Ether and XRP experienced notable declines among major cryptocurrencies, with Ether falling over 2% to $1,878 and XRP decreasing nearly 2% to $1.01, marking a significant weekly decline of almost 6% for XRP.
In contrast, Solana and BNB managed to retain their weekly gains, with Solana down less than 1% to $76 but still up 3% for the week. BNB also saw a slight decrease to $600 while maintaining a 2% weekly gain. Meanwhile, HYPE, Tron, and Dogecoin showed marginal increases.
Market analysts, including Alex Kuptsikevich from FxPro, suggest that the lack of buying momentum at the $65,000 mark indicates a build-up of short positions rather than profit-taking. He pointed out that $70,000 is a critical level to watch, coinciding with Bitcoin’s 200-day moving average, which could signal a shift in market sentiment if surpassed.
Currently, the crypto sentiment index reflects a fearful state at 30, a range it has occupied since mid-July, with occasional dips into extreme fear territory.
In broader market trends, rising bond and oil prices are influencing investor sentiment. U.S. 10-year Treasury yields recently increased to 4.71%, impacting government bonds in Australia and New Zealand. Brent crude prices stabilized at $87.73 per barrel following a significant rise due to geopolitical tensions affecting supply expectations.
As the inflation data looms, concerns are mounting for assets typically favored when interest rates seem stable. Despite positive fund flows earlier in the week, U.S. spot Bitcoin funds experienced a preliminary outflow of $91 million on Monday after attracting $865 million over the previous five sessions.
