Bitcoin Market Analysis: Traders' Sentiment is Optimistic but Cautious, Institutional Demand is Key

Gate News bot news, regarding the recent market trend of Bitcoin, BTC Markets crypto assets analyst Rachael Lucas stated: “Geopolitical instability, such as the recent attack by Israel on Iranian nuclear facilities, led to a brief fall of 4% in Bitcoin prices, highlighting Bitcoin’s sensitivity to hedging events. Nevertheless, as investors use it as a geopolitical hedging tool, Bitcoin prices typically rebound quickly.”

He added that the price trend of Bitcoin is currently influenced by factors such as institutional capital flows, macro data, and geopolitical risks. In addition, the Bitcoin Fear and Greed Index is currently at a moderate level of 61, reflecting that investor sentiment is “optimistic but cautious.”

Against the backdrop of escalating geopolitical tensions, Vincent Liu, Chief Investment Officer of Kronos Research, stated that he believes strong global liquidity and institutional demand may lay the groundwork for a price breakthrough after the dust settles.

The spot Bitcoin exchange-traded fund (ETF) had a monthly net inflow of 5.23 billion USD last month, which is comparable to the levels before and after the election of US President Trump earlier this year, sending multiple bullish signals for the entire Crypto Assets market.

Lucas stated: “The recent breakout of Bitcoin above the resistance level of $106,406 indicates that the bullish momentum continues, with the next major target being the historical high.”

At the same time, Ethereum has risen by 1.48% in the past day, trading at $2,569. Although Bitcoin’s dominance remains around 65%, analysts indicate that Ethereum has been gaining momentum among institutional investors, with catalysts like the DeFi summer potentially further boosting its trend.

Source: The Block