$BTC (-2,18%) Bitcoin is currently under pressure less due to crypto-specific factors than due to geopolitics, interest rates and liquidity rotation. A total of USD 5.8 billion has recently flowed out of digital asset investment products - a clear drop in sentiment, but no structural damage. The interest rate market is decisive: instead of one or two interest rate cuts, the market is now pricing in around 40 basis points of interest rate hikes. At the same time, AI is withdrawing capital from other segments. Bitcoin now needs two things above all: more clarity in the Iran conflict and a turnaround in the interest rate outlook. (Author: James Butterfill, CoinShares' Head of Research)
