Following a nearly week-long decline, cryptocurrency markets appeared to have stabilized during the previous day as ongoing geopolitical disputes appeared to be weighing on the values of riskier assets.
Since Monday, markets have declined as investors have discounted the potential effects of the unrest on global trade by pricing in higher oil prices and a decline in traditional equities.
After losing 3% during the previous week, Bitcoin was hovering just above the $26,8000 level. Ether (ETH) was trading over $1,500 after a 5% weekly loss. Other significant tokens also experienced some losses before stabilizing: XRP and Solana’s SOL dropped as much as 8%, while BNB Chain’s BNB and Dogecoin (DOGE) fared only marginally better, losing 3%.
According to some observers, the present price movement seen in the bitcoin markets is neither inherently bullish nor bearish and instead suggests an equilibrium between buyers and sellers.
“Bitcoin has recently been in a building phase, neither particularly bullish nor bearish,” said Andy Bromberg, CEO of Beam, in an email to CoinDesk. There is now an equilibrium, with a few people joining Bitcoin and just as few leaving it.
“This equilibrium results in rather constant pricing. Significant change won’t likely occur until after a catalyst, like a price halving or the launch of spot ETFs, Bromberg continued.
Investors anticipate that the approval of a spot bitcoin exchange-traded fund (ETF) in the United States will unleash a wave of institutional demand and fresh capital.
In the meantime, following an early sell-off fright, investors’ confidence in the long-term “quality” asset may have contributed to Friday’s stability in the bitcoin-led market.
Dan O’Prey, Chief Product Officer of Bakkt, is saying that the cryptocurrency market is maturing and investors are becoming more selective about where they put their money. Bitcoin is benefiting from this trend because it is seen as a safe and reliable asset.
Bitcoin will “continue to be the most established, understood, and trusted cryptocurrency available for the foreseeable future,” according to Bobby Zagotta, US CEO of Bitstamp. He also noted that the number of active trading clients on the exchange has been increasing week over week.