Following two days of high volatility, bitcoin traded largely flat around $81,500, putting it on track for its first monthly loss since July.
Key Takeaways
- Bitcoin held flat near $81,500 Friday, leaving its 30-day market capitalization down 3% at $1.64 trillion.
- Long liquidation wipeouts accounted for nearly 64% of total crypto market liquidations of nearly $255 million.
- Mitchell Askew of Blockware expects bitcoin to trend higher after the upcoming U.S. elections conclude.
Bitcoin Flat Amid Geopolitical Tensions
Following two days of heightened price volatility, bitcoin traded largely flat on Friday, even as surging oil prices—fueled by fears of escalating war of words between the U.S. and Iran—shook broader markets. The pause left bitcoin virtually unchanged over the past seven days, keeping the cryptocurrency on track to close the month in the red for the first time since July.
According to daily price charts, bitcoin held mostly above $81,000 but repeatedly stalled near $81,600. As of 1:30 p.m. EST, bitcoin hovered just above $81,500, virtually flat compared with 24 hours earlier. The muted action kept its market capitalization at $1.64 trillion, down nearly 3% over a 30-day period.
Although muted prices kept total bitcoin liquidations near 25 million, long bets bore the brunt of the damage for a second straight day, accounting for 63% of total wipeouts. Across the broader crypto market, liquidations reached nearly $255 million, driven by about $163 million in long positions.
Despite the Trump administrations recent efforts to curb energy costs, U.S. benchmark West Texas Intermediate (WTI) touched $100 a barrel on Friday, while global benchmark Brent crude hit $117 a barrel. The spike in oil prices has amplified inflation concerns, strengthening the case for Federal Reserve interest rate hikes, an outlook that typically weighs on both crypto and traditional equities.
Analysts See Healthy Consolidation and Election Upside
Adding further headwinds, a report by Amina Research highlighted a shift in broader market sentiment, noting that Thursdays cross-market sell-off was fueled by growing investor skepticism over the long-term sustainability and return on investment (ROI) of artificial intelligence expenditures. As mega-cap tech firms continue to deploy massive capital into AI infrastructure without immediate, proportional revenue gains, traders are increasingly questioning whether current market valuations are sustainable.
Meanwhile, Mitchell Askew, head of Blockware Intelligence at Blockware, insisted that bitcoins pullback to under $82,000, where it has held in recent weeks, is healthy price action.
“Holding that range while the 10-year sat at 20-plus-year highs and equities repriced the AI trade tells you the marginal seller has been exhausted. Todays move is bitcoin getting sold alongside tech in a broad risk-off session, nothing more. The bigger signal is the bond market: Yields falling sharply means the market is starting to price in a Fed response, and historically that shift in liquidity is when bitcoin performs best,” Askew said.
Askew added that bitcoin will likely perform well once the upcoming U.S. elections are behind us, just as it has done following each of the last three election cycles.
“Were confident the market is in an uptrend here,” Askew said. “The dip below $82K is a pullback within a base that has been building since the summer, and we expect it to resolve higher.”
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