Биткоин теряет позиции под давлением экономических рисков Translation: Bitcoin Loses Ground Under Pressure from Economic Risks

The price of the leading cryptocurrency has dropped below $108,000. This decline is attributed to macroeconomic uncertainties, particularly the trade tensions between the United States and China.

In a 24-hour period, Bitcoin has seen a decline of 3.2%, currently trading around $108,000. On October 20, the asset briefly rose above $111,000.

According to Jeff May, COO of BTSE, market volatility is likely to persist. He has linked it to the ongoing trade conflicts between the U.S. and China, suggesting that the recent downturn resulted from traders minimizing risks ahead of the leaders’ meeting.

*“Even if they reach an agreement, it’s unlikely that tensions will completely dissipate,”* he added.

The pressure has also affected the altcoin market, with Ethereum dropping 4.8%, BNB declining 6%, and Solana falling 4.5%.

Spot cryptocurrency ETFs have also recorded capital outflows. According to SoSoValue, Bitcoin funds experienced a withdrawal of $40.47 million, while Ethereum-based instruments saw $145.68 million exit.

The Fear and Greed Index has decreased to a level of 34.

Traders are now anticipating the release of consumer price index data, which could impact the Federal Reserve’s decisions regarding interest rates. The CME FedWatch tool indicates a 98.9% probability of a 25 basis point cut.

At the time of this writing, total liquidations amounted to $322.59 million.

In comparison, the market crash on October 11 resulted in *a staggering $19 billion in liquidation.* Nevertheless, this incident demonstrated that the digital asset ecosystem can withstand shocks, analysts from TD Cowen stated.

*“While the recent episode caused financial difficulties for many investors, we are impressed by how well the underlying ecosystem functioned,”* wrote the experts.

They noted that this was the largest single-day liquidation in history, yet most cryptocurrency exchanges operated almost without disruption.

Experts estimate that less reputable tokens were «wiped out,» while Bitcoin and Ethereum maintained their positions. For instance, Bitcoin briefly fell to a low of -15% but closed the day down only 8%.

TD Cowen analysts remain optimistic about Bitcoin’s future, predicting its price could reach $141,000 by December.

Beyond market resilience, they highlighted the ongoing global acceptance of Bitcoin. They cited Japan, where the number of registered digital asset accounts has quadrupled to 7.9 million.

*“This surge has prompted the country’s Financial Services Agency to reconsider a longstanding ban on banks investing in digital assets like Bitcoin,”* concluded the analysts.

Analyst Willy Woo believes that the next bear market in the cryptocurrency sector will differ from previous ones, as it will be characterized by a downturn in the “business” cycle that the industry has not yet confronted.

Previously, Bitcoin halving and central bank actions influencing the global money supply defined market cycles. Now, an additional factor will come into play.

According to Woo, the key criterion will be the actual economic recession. The last significant decreases in business activity occurred in 2001 and 2008—before Bitcoin’s emergence.

The central question remains how the first cryptocurrency will respond in such conditions.

*“Will Bitcoin decline like tech stocks, or will it behave like gold?”* queried the analyst.

A recession is a period of economic decline characterized by a contraction in GDP and rising unemployment. Woo believes that cryptocurrency markets are not insulated from these processes, as they affect overall liquidity.

For instance, during the dot-com bubble in 2001 and the financial crisis in 2008, the S&P 500 index fell by over 50%.

The analyst reminded that markets are speculative and often price in future events ahead of time.

*“Either Bitcoin is already signaling to global markets that its peak has passed, or it has catching up to do,”* concluded Woo.

It is worth noting that on October 17, the price of digital gold fell below $105,000.