Cryptocurrency markets started the week dynamically. Bitcoin fell to $79,614 in Asian trading. Bitcoin, which traded with a 1.6 percent loss in the last 24 hours, withdrew from the $ 81,500 level it reached on Wednesday. This figure was last recorded at the end of January. On a weekly basis, Bitcoin is still up 3.3 percent. According to CryptoAppsy data, Bitcoin price was at $ 79,614 when the news went live.
Mixed trend throughout the market
While the Ethereum price dropped by 2 percent to $2,278, Dogecoin lost 3.8 percent to $0.1063. XRP also found buyers at $1.38, down 1.7 percent. There was only a 0.7 percent decrease in BNB and it stabilized at $638. Solana and TRON remained slightly positive at $88.14 and $0.3474, respectively. While major cryptocurrencies generally appeared positive on the weekly chart, Dogecoin was the only major coin to lose during this time.
Geopolitical tension and effects on markets
The impact of geopolitical developments was felt behind this retreat in the market. Following the attacks on US navy destroyers, news that the American army attacked Iranian targets occupied the agenda. In his statement, US President Donald Trump evaluated the attack as a “light touch” and stated that the ceasefire with Iran continues. However, he pointed out that harsher steps could be taken if the Tehran administration does not sign the desired agreement.
There was also a change in oil prices in the tension environment. Brent oil increased by 1.2 percent to 101 dollars. Despite this, oil prices have lost more than 6 percent in value on a weekly basis. The general expectation of a decrease in tensions between the USA and Iran was effective in continuing the sales pressure on oil.
Historical low in funding rates
Funding rates in Bitcoin futures have been negative for the last 67 days. This was the longest negative period in the last decade. According to data from K33 Research, negative funding; It means that short investors pay long investors to maintain their positions.
A market where short position holders have been forced to pay for more than two months is preparing for a sudden short squeeze. In such a case, closing short positions with a rapid price increase may accelerate the wave.
FxPro’s chief market analyst Alex Kuptsikevich argued that Bitcoin’s stagnant course this week is a period for investors to gather strength. He emphasized that the daily RSI indicator rose above 70 points and moved to the overbought zone, and historically there have been sharp sales after this point. Reminding that a similar pattern has been observed for three times, he said, “It makes sense for market participants to evaluate the situation and gather strength.”
At the same time, the cautious trend in the option markets is also noteworthy. In the statement made by QCP Capital, it was stated that the volatility rate calculated on a monthly basis remained around 41 percent and the demand for put options continued. This shows that investors are choosing to hedge the risk of decline while buying Bitcoin.
On the other hand, Japanese research firm However, it was also stated that reaching this level will not follow a linear course and the price may first decline slightly.
Currently, two opposing forces are at the forefront in the market: Continuation of negative funding rates could trigger a short squeeze if Bitcoin breaks the $83,200 level. On the other hand, geopolitical developments and overbought indicators may cause the price to retest the lower levels.
