"These movements reflects that the market remains under pressure despite buyers defending a key demand area. Negative sentiment in equities and growing uncertainty about the broader economy are weighing on risk assets, limiting the ability of bulls to extend momentum. The S&P 500 and Nasdaq 100 both declined for a second straight session, reinforcing a fragile backdrop that continues to test Bitcoin's resilience."
"Futures market dynamics are adding to the cautious tone. The BTC open-interest-weighted funding rate is generally falling, as shown by CoinGlass figures, pointing to declining conviction among leveraged traders for pushing above for further. Also, long positions have faced meaningful liquidations, with $150 million wiped out in Ethereum and $72 million in Bitcoin since September 1st. The inability of bulls to sustain higher levels reflects how quickly optimism fades in this environment."
"On chain data signals further risk warnings as well. According to Yonsei_dent on CryptoQuant, the Market Value to Realized Value (MVRV) ratio has just formed a death cross, as its 30-day average fell below the 365-day average. This metric, which compares market capitalization to realized value, suggests short-term enthusiasm is weakening relative to the long-term trend. Previous instances of such crossovers in 2022 coincided with major pullbacks, reinforcing caution at this juncture."
The market remains under pressure despite buyers defending a key demand area. Negative equity sentiment and growing economic uncertainty are weighing on risk assets, restricting bullish momentum. The S&P 500 and Nasdaq 100 declined for a second straight session, challenging Bitcoin's resilience. Attention is focused on a heavy slate of labor market data culminating in Friday's nonfarm payrolls, with the dollar sensitive to rate-cut expectations and labor data potentially decisive for market direction. Futures dynamics show falling BTC open-interest-weighted funding rates and significant long liquidations—$150 million in Ethereum and $72 million in Bitcoin since September 1—weakening leveraged conviction. Seasonal patterns and an MVRV death cross add further downside risk.
Read at London Business News | Londonlovesbusiness.com
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