Bitcoin is trading near $83,000, marking a 1.8% decline over the last 24 hours. The asset opened the week at $84,455 and reached a high of $84,972 before dropping to a low of $82,580.
Market analysts point to geopolitical tensions as a catalyst, specifically President Donald Trump's rejection of Iran's proposal regarding the Strait of Hormuz. This news triggered a rise in Brent crude prices, a stronger dollar, and increased Treasury yields, impacting non-yielding assets.
Despite the pullback, technical indicators remain bullish. The 50-day moving average is above the 200-day average, forming a golden cross. The Relative Strength Index stands at 58.7, while the Average Directional Index is at 43.2.
Derivatives markets show increased activity with open interest rising 8.17% to $382.29 billion. Trading volume for derivatives spiked 66.28% to $838.18 billion, with liquidations totaling $478 million over the past day.
The total cryptocurrency market capitalization is approximately $2.86 trillion. While Bitcoin cools, institutional demand remains supported by net positive inflows into spot Bitcoin ETFs, a trend that has persisted since mid-September.
