The geopolitical risks are making gold look better. Defensive assets remain in demand on Wednesday following fresh attacks on shipping in the Middle East and a North Korean missile launch. Meanwhile, the gold price gained strength while bitcoin was virtually unchanged. The additional uncertainty comes from the rising price of oil. The price of Bitcoin may face challenges in near term if these risks reduce demand for speculative assets.
Bitcoin Price Forecast as ETF Demand Meets Selling Near $66,000
Bitcoin dropped to approximately $63,500 on Tuesday and continued to trade in the $62,000 to $66,000 range for the past few weeks. The price has increased by approximately 2% in the past week despite consistent demand by US spot Bitcoin ETFs. The response suggests that so far there has been no sufficient momentum to trigger stronger recovery from the fresh buying.
The recent ETF demand has met selling from the miners and corporate holders. This supply has absorbed much of institutional buying. The trading volume and implied volatility have also decreased to multi-year lows. When the activity is low, Bitcoin is likely to stay in tight range but it can also be a sign of sharp move once a strong catalyst comes.
