Key rulings you need to know
When macro factors dominate everything, the crypto market has reacted noticeably. The total market capitalization has dropped to $2.42 trillion, with over $142 million in Bitcoin long positions liquidated in a single day.
Lian observed that this new identity provided almost no protection when both were under the same macroeconomic pressures.
The tensions in the Middle East have further exacerbated the situation. Potential disruptions in the Strait of Hormuz have led to fluctuations in energy prices, intensifying the Federal Reserve's cautious outlook on inflation. West Texas Intermediate crude oil fell 1.7% to $93.95 per barrel, providing some relief to Asian markets, but European stocks faced greater losses, with the STOXX 600 index down 0.7%.
Bitcoin at a Critical Support Level of $70,000
The short-term outlook for Bitcoin depends on its ability to defend the support range of $69,000 to $70,000. If this level is breached, coupled with further strengthening of the dollar index, it could push the total market capitalization of the crypto market down to $2.3 trillion.
The next Federal Open Market Committee meeting is scheduled for April 28-29, which will be the next major macro catalyst for the market.
The SEC-CFTC ruling has laid the groundwork for broader institutional participation in the crypto market. However, whether this structural positive can manifest under short-term macro pressures has become a core question as we enter the second quarter.
Bitcoin has fallen under macro pressures. The Federal Reserve's hawkish stance and delayed rate cuts are overshadowing the positive regulatory news.
Higher interest rates reduce liquidity and risk appetite, which typically leads to declines in Bitcoin as investors shift funds to safer assets like bonds.
Bitcoin is increasingly resembling a hedge asset. In an inflation-driven market, it is now moving more in line with gold rather than tech stocks.
Bitcoin may recover when inflation subsides and rate cuts begin. If it can strongly hold above $70,000 and improve liquidity, it could signal a trend reversal.