Bitcoin is ‘still a very risk-on asset,’ Bloomberg’s Nicolle says

Bitcoin has entered the territory of Bear, down 25% compared to its summit of all time, because macroeconomic uncertainty and political factors scare investors.

Speaking on Bloomberg TVCrypto journalist Emily Nicolle argued that Bitcoin (BTC) is “always a very risky asset” which is strongly correlated with changes in the macroeconomic landscape. As such, what is happening to Wall Street will take place in Bitcoin.

The slowdown is also fueled by setbacks within the cryptography industry, in particular $ 1.5 billion hack by Bybit Last week led to a “difficult period” for the sector.

Political uncertainty is another factor, she said. Some investors hoped for lighter regulatory developments in the Trump administration, but these expectations remain unsatisfied. She said:

“Some of the things that Trump has promised to do on the campaign path does not yet happen, and these are the catalysts that we are looking for as potential advantages for Bitcoin.”

Where is the crypto going?

Investors look closely at the level of $ 70,000 as a key psychological and technical support area.

“If that continues to drop, then this is the next point where we are going to start thinking:” OK, this is where many risks occur “,” said Nicolle.

She also pointed out that the options of options are highly concentrated around this threshold, which means that a break below could trigger additional sales pressure.

Meanwhile, the wider market of cryptocurrencies suffered alongside Bitcoin. Altcoins are “all suffering too, as expected,” she said. In fact, some parts are faced with higher sales pressure.

Solana (GROUND) was particularly affected following a money scandal even linked to the president of Argentina. Meanwhile, Ethereum (Ethn) The sales pressure can be assigned to its association with the hacking of $ 1.5 billion.

“Without any upward potential, Bitcoin is the tide that raises all boats. If Bitcoin is struggling, other cryptocurrencies tend to be even harder, ”noted Nicolle.

Next movement for Bitcoin

Bitcoin’s next decision will depend on macroeconomic conditions and regulatory developments. If the Trump administration introduces reasonable Stablecoin legislation or any form of pro-Crypto policies, the recent Bitcoin oes could “be a boon for Bitcoin,” she said.

“But if things do not happen and the markets are improving elsewhere, Bitcoin will probably continue to fight.”