NewsBTC reports that Bitcoin’s unstable nature continues to persist, as observed by a crypto analyst. The cryptocurrency is thought to be a highly speculative asset closely tied to the fluctuations in the macroeconomic environment.
Bloomberg’s crypto journalist, Emily Nicolle, shared her insights on Bitcoin as the pioneer cryptocurrency experienced a 13% drop and ventured into bearish territory. This could be attributed to macroeconomic instability and geopolitical issues.
During a Bloomberg TV interview, Nicolle stated that the current trends in Bitcoin are intrinsically linked with shifts in the macroeconomic environment. She suggested that happenings on Wall Street could have direct implications on the cryptocurrency market.
Nicolle emphasized that the influence of the macro environment on Bitcoin cannot be underestimated, remarking, “The effects on stocks reverberate within the crypto sphere.” She characterized Bitcoin as extremely speculative assets. She pointed out, “Bitcoin is affected by disruptions in the S&P 500. This is what’s propelling its current state.”
The analyst also noted that aside from the macroeconomic conditions, the cryptocurrency industry has been through a turbulent phase. She mentioned, “There was a $1.5 billion hack last week and political turmoil,” as contributing factors to the current state of Bitcoin.
Recently, Bitcoin suffered a blow when an estimated $1.5 billion worth of crypto was looted by a North Korea-based hacker group from Bybit, in what could be the largest cryptocurrency theft ever.
Regarding future prospects, Nicolle stated, “The future performance of Bitcoin remains uncertain, especially considering the current circumstances.”
Political instability also plays a role in pushing Bitcoin into bearish territory. Despite promises from the U.S. President Donald Trump to establish clear regulations on cryptocurrency, these have not been implemented. Nicolle pointed out that these unfulfilled promises could act as catalysts for potential Bitcoin growth in the coming weeks.
She concluded by saying that the macro environment is a significant determinant of Bitcoin’s potential. “Without any positive developments elsewhere, Bitcoin’s decline is likely to continue,” she predicted.
According to Nicolle, crypto traders are keenly watching the $70,000 mark, which is seen as a crucial psychological and technical support zone. She also noted that Bitcoin’s movement influences other cryptocurrencies. “When Bitcoin rises, other cryptocurrencies follow suit. However, smaller cryptocurrencies are more vulnerable during market volatility,” she explained.
