Crypto analyst BitQuant has responded to why market participants aren’t buying Bitcoin and ether despite the recent lows. This comes amid current market weakness, with on-chain analytics platform CryptoQuant warning of a deeper decline.
Why Investors Aren’t Buying the Bitcoin and Ethereum Dip
In one X messageBitQuant noted that no one, except Saylor’s Strategy, is buying Bitcoin at $65,000 due to reports that the US could attack Iran. He added that when that happens, many believe it BTC will fall up to $50,000, and that’s why they don’t buy. Ethereum is expected to fall further as BTC falls.
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The analyst noted that these market participants forget that Bitcoin fell from $90,000 to $60,000 without any news or news, and they consider this nuance unimportant. As such, he suggested that BTC and Ethereum could still see lower prices, whether or not the US attacks Iran.
However, BitQuant indicated that current prices don’t matter in the long run as Bitcoin and possibly Ethereum are likely to trade higher. He stated that many still do not understand that BTC is a system and that they only see it as an asset. The analyst added that for many, BTC resembles a football match where they celebrate when there is a goal and leave the stadium when there is no goal.
Bitcoin, Ethereum and the broader crypto market are currently facing downward pressure, not only due to a possible US attack on Iran, but also due to the uncertainty surrounding the Trump Tariffs. The US president announced plans this weekend to increase the global tariff from 10% to 15%, after the Supreme Court ruled against the tariffs under the International Emergency Economic Powers Act (IEEPA).
BTC could still fall below $40,000
A CryptoQuant Analysis recently suggested that Bitcoin could still fall below $40,000 to around $38,900, which is the cost basis for long-term holders (LTHs). The analysis also alluded to historical precedent, noting that each bear market was characterized by the price of BTC falling below its cost base. This leads to a final capitulation phase, characterized by realized losses of approximately 20%.
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The analysis also shows that the market will only be able to rebuild the necessary foundations after this phase a trend reversalwith Bitcoin and Ethereum reaching new highs. Meanwhile, another one CryptoQuant Analysis mentioned that the Coinbase Premium Index is showing limited signs of recovery.
The index’s 30-minute simple moving average briefly dipped above zero, but failed to maintain momentum into the new week. CryptoQuant stated that this lack of sustainable recovery in the premium, despite the temporary increase, is considered a potential trigger for the recent downward price action.
Featured image of Pngtree, chart from Tradingview.com