The post Bitcoin Demand Weak As Middle East Tensions Impact Crypto Markets appeared on BitcoinEthereumNews.com.

Bitcoin’s demand is significantly declining as escalating tensions in the Middle East weigh heavily on the cryptocurrency market. Analysts attribute the slump to increased selling pressure following Iran’s recent missile strikes on Israel, leading the Bitcoin decline of 8% in the last week, according to Brave New Coin’s Bitcoin Liquid Index. Source: Brave New Coin Bitcoin Liquid Index On Tuesday, Iran launched over 180 ballistic missiles at Israel in retaliation for Israeli assaults on Hezbollah positions in southern Lebanon. This surge in regional tensions has had a direct impact on Bitcoin demand, as highlighted by CryptoQuant data. The Net Taker Volume metric, which indicates the net buying or selling pressure, has seen a substantial decrease since the escalation began. “Buying pressure has remained subdued since the Iran strike,” stated J.A. Maartunn, a CryptoQuant analyst, in an interview with The Block. “The drop in net taker volume by over $150 million signals significant selling pressure, while the fact that it hasn’t exceeded $100 million since Tuesday suggests a lack of strong buying momentum.” This downturn is not isolated to Bitcoin alone. Ethereum also experienced a significant 12.60% decline in the last week, dropping below the $2,300 mark on October 4th, according to Brave New Coin’s Ethereum Liquid Index. Market Sentiment Shifts to Neutral Bitwise Head of Research – Europe, André Dragosch, observed a negative trend in net buying volumes on Bitcoin spot exchanges over the past three days. However, he noted signs of short-term seller exhaustion, citing an increase in long Bitcoin futures liquidations—the highest since August 5, when Bitcoin reached its recent low. “Moreover, short-term holders have sent the most bitcoins at a loss to exchanges since the lows in August,” Dragosch explained. He added that sentiment has shifted from relatively high to more neutral levels, according to the Bitwise…

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Filed under: News - @ October 5, 2024 7:25 am