US Market Conditions Impact Bitcoin Price, but Long-Term Outlook Remains Strong: Expert

New observations by Ki Young Ju, the CEO of CryptoQuant, show that the Bitcoin market is decelerating , fueled primarily by changing sentiment in the United States. In a recent post on X, Ju pointed out that although important on-chain metrics are neutral, the bull cycle for Bitcoin remains intact. Nevertheless, without altering U.S. market conditions, price momentum may be sluggish. U.S. Market Sentiment and Bitcoin Price Action Ju's analysis suggests that recent Bitcoin price action has been caused by whale activity on Coinbase, a major U.S. exchange. His post references the Coinbase Premium Index, which monitors the gap between the price of Bitcoin on Coinbase and on other international exchanges. This index is often used to gauge institutional interest and U.S. investor sentiment. According to Ju, the market’s mood today is significantly different from late 2024, when enthusiasm and inflows were stronger. Bitcoin’s Fundamentals Remain Strong Despite the slowdown, Ju remains optimistic about Bitcoin's long-term direction. He emphasized that despite no significant on-chain activity today, Bitcoin still has solid fundamentals in place. One factor supporting such a statement is the continued scale-up of Bitcoin mining operations and the introduction of additional mining rigs. Also, Bitcoin's price movement has created a symmetrical triangle pattern, and that may be the deciding factor for its next direction. Having recently touched the $82,000 level again, experts look at the 61.8% Fibonacci level as a critical support area. If Bitcoin does not hold above this level, it may be forced to dip further towards $70,000. On the other hand, a break above the short-term resistance trendline would send Bitcoin back to $92,000, the way towards a potential rally. Ju also pointed out that an early end to this cycle would be an undesirable scenario for multiple stakeholders, such as old whales, mining companies, traditional finance (TradFi) players, and even Donald Trump. The sentiment suggests that a rebound to a new all-time high is still likely despite ongoing bearish performance.  Market Outlook: Will Bitcoin Regain Its Strength? Ultimately, whether or not the bull cycle continues will depend critically on Bitcoin's capacity to hold onto important support levels throughout the latest downturn.  Potential triggers that could regain investor confidence in the U.S. market include macroeconomic changes and regulatory developments, which many traders also monitor.