Over the past 24 hours, the cryptocurrency markets appeared to find some stability, ending a week-long decline triggered by ongoing geopolitical tensions that put pressure on the prices of more speculative assets. Market performance took a hit starting on Monday as traders factored in the increase in oil prices and a drop in traditional equities, both of which were seen as potential repercussions of the current global turmoil affecting international trade, according to analysts cited by CoinDesk.
Bitcoin, which had lost 3% of its value over the past week, was trading just above the $26,800 mark, while Ether (ETH) traded at slightly over $1,500 after a 5% weekly decrease. Other major cryptocurrencies also stabilized after experiencing some losses: XRP and Solana’s SOL had both dropped by as much as 8%, while BNB Chain’s BNB and Dogecoin (DOGE) performed slightly better with a 3% loss.
Some analysts noted that the current price action in the Bitcoin market did not display a clear bullish or bearish trend but rather indicated a state of equilibrium between buyers and sellers. Andy Bromberg, CEO of Beam, explained, “Bitcoin has recently been in a building phase, neither particularly bullish nor bearish. At the moment, there’s a balance, with few newcomers entering into Bitcoin and equally few exiting. This balance creates a relatively stable price. Significant movement is unlikely to happen until after some sort of catalyst, such as the halving or the introduction of spot ETFs,” Bromberg added.
Traders are eagerly awaiting the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, anticipating that it will pave the way for greater institutional demand and an influx of new capital.
Adding more, part of the stability observed in the cryptocurrency market on Friday may be attributed to increased confidence in Bitcoin as a long-term, high-quality asset, following initial concerns sparked by a sell-off. Dan O’Prey, Chief Product Officer of Bakkt, noted, “After the exuberance of the last few years, we’ve seen a significant shift towards high-quality assets and providers. Bitcoin, known for its decentralization and security, has benefited from capital inflows at the expense of riskier, lower-quality coins.”