Amid escalating trade tensions triggered by recent developments in North America, the cryptocurrency market has experienced significant upheaval. Bitcoin [BTC], in particular, has felt the impact of these events.
During the last 48 hours, Bitcoin plummeted to a new low of $91k, marking the first occurrence of such a drop in 2025. This sudden market downturn has sparked discussions among key players regarding the future trajectory of Bitcoin.
Bitcoin’s NVT Golden Index Approaches a Pivotal Level
Insights from CryptoQuant reveal that the NVT Golden Cross indicator currently depicts the Bitcoin market as overheated, raising concerns about a potential market bubble.
As the Golden Cross spikes to a current level of 2, it suggests that bears are making attempts to gain control over the market dynamics.
When the Golden Cross hits this threshold, it indicates the likelihood of sustained downward pressure. This trend has materialized over the last couple of days, coinciding with a pessimistic sentiment among American investors.
Overshooting the critical threshold signifies the gradual formation of a downward momentum, as bearish sentiments start to dominate.
Insights from Other Metrics
Although recent price fluctuations have raised alarm bells, various metrics point towards a more optimistic outlook in regions beyond the U.S.
Therefore, the recent market correction may be a transient dip before a potential recovery takes place.
For instance, despite the current market conditions, Bitcoin whales continue to exhibit bullish behavior by retaining their assets off exchanges. Consequently, the Exchange Whale Ratio has dropped to a 10-day low.
This reduction signifies the whales’ anticipation of a price rebound, as they refrain from selling their Bitcoin holdings.
Furthermore, Bitcoin’s VDD Multiple remains above 1, standing at 1.05 at the moment. A sustained value above 1 indicates that long-term holders are refraining from panic selling, thus promoting market stability.
The market experiences minimal selling pressure from long-term holders, with the current downturn primarily influenced by short-term holders. Given the positive stance of long-term holders, a prompt market recovery seems likely, with a limited scope for prolonged decline.
Despite the recent bearish shift in the North American market impacting Bitcoin’s value negatively, indications point towards short-term holders driving the current dip.
The market’s eventual resurgence is expected, as long-term holders and whales maintain a bullish stance.
This anticipated revival could witness Bitcoin reclaiming $96,370 and aiming for the $98,000 mark. Nevertheless, a potential further correction might lead to a dip towards $92,103.