- Bitcoin, currently trading at $27,460 with a 0.55% decline, is struggling against some significant factors that are dampening investor optimism.
- Amid sentiments around the upcoming Bitcoin Halving and expectations for a spot BTC ETF product, Bitcoin’s crucial growth determinant continues to be in focus.
- Despite these discouraging metrics and the $28,500 resistance, Bitcoin has managed to stay above $27,000, with the asset last seen below the $27,000 psychological support on October 1.
The reason why Bitcoin could not hold on to 28 thousand dollars has become a matter of great curiosity in the market; Despite these, the $27 thousand support is strong!
Bitcoin Struggles at $28,000
Bitcoin (BTC) has been unable to overcome the $28,000 resistance due to macroeconomic concerns, declining trading data, and disappointed expectations for a spot Bitcoin ETF.
Bitcoin has faced increasing selling pressure. Currently trading at $27,460 with a 0.55% decline, Bitcoin is contending with some significant factors that are dampening investor optimism.
Macro Economic Conditions
As an investment vehicle, Bitcoin’s price performance is influenced by the trends in the global economy. Recently, Michael Barr, the Vice Chair of the United States Federal Reserve, expressed optimism about economic growth. He stated that rising interest rates could significantly limit economic activity.
These economic constraints generally have different effects on the overall crypto ecosystem. Policies aimed at supporting a vibrant economy can increase the appeal of traditional assets, which can, in turn, reduce hopes for Bitcoin’s near future.
Declining Interest
Additionally, the Bitcoin futures premium continues to trade below a healthy neutral reference of 5%. Typically, the Bitcoin Futures Premium determines how willing futures traders are to delay settlement of contracts. This metric is expected to be between 5% and 10% annually.
Bitcoin trading below this reference indicates limited demand for long positions. This decline and the slowdown in spot trading volume have contributed to Bitcoin’s performance decline this month.
Unfulfilled Bitcoin ETF Expectations
Expectations for a spot BTC ETF product continue to be a critical driver of Bitcoin’s growth, alongside sentiments surrounding the upcoming Bitcoin Halving. Investors have become increasingly skeptical about the future of spot Bitcoin ETFs due to the very low trading volumes recorded by Ethereum Futures ETFs launched earlier this week.
Despite the United States Securities and Exchange Commission (SEC) not yet approving such a product, sentiment is low in this regard. Despite these discouraging metrics and the $28,500 resistance, Bitcoin has managed to stay above $27,000. It appears that the asset is successfully defending this threshold while attempting to recapture $28,000.
