Introduction
Bitcoin’s price is currently around 82,951, up +5.74%. Yet, Investors are becoming more careful, cutting back on high-risk trades on Bitcoin due to concerns about the U.S. economy. Many traders are now reducing leverage, which means they are borrowing less money to trade BTC. This shows that people are not as confident in the market right now. But does this mean BTC will keep dropping, or can it bounce back soon?
Old Bitcoin Wallets Are Moving—Should We Worry?
Another warning sign is that some long-time Bitcoin holders have started moving their coins again. In the past few days, over 8,000 BTC that had been inactive for 3 to 5 years was suddenly sent to exchanges. Usually, when people move old BTC, it means they might be getting ready to sell, which could push prices down further.
At the same time, BTC’s exchange inflows have jumped. In just one day, over 50,000 BTC was sent to exchanges. This suggests that more traders are looking to sell rather than hold, which could lead to more price drops.
Bitcoin Traders Are Taking Fewer Risks
Since January 29, Bitcoin’s Futures Estimated Leverage Ratio has been going down, meaning traders are being more cautious. Right now, the ratio is at -0.13, showing that investors are taking less risk because they are not sure where the market is heading.
One big reason for this caution is uncertainty about U.S. economic policies. Investors are worried about how new government decisions might affect the market, and that has made people less willing to make risky trades. The Coinbase Premium Index, which shows how much U.S. investors are buying BTC , has been negative for two weeks. This means that many American traders are selling BTC, and big investors are not stepping in to buy. If this continues, BTC might struggle to go up anytime soon.
What Will Happen to Bitcoin Next?
Since investors are cutting back on risk, Bitcoin is still in a weak position. Its future will depend on what happens with the U.S. economy and whether investors start feeling more confident again. If the market stays bearish, BTC’s price could drop to $77,592 soon. But if traders regain confidence, BTC might rise to $84,000 and start moving up again. Right now, Bitcoin’s price remains uncertain, and investors are watching closely to see what happens next.
