The cryptocurrency market hesitated with recovery in the midst of growing economic fears and commercial tensions, with cautious institutional investors before a high volatility panorama.
The cryptocurrency market seeks to recover but are still in tension. This Wednesday, February 26, Bitcoin is located at US $ 84,565, according to Binance, after losing the US $ 90,000 since November, while Ethereum (ETH) descends 6% and operates at US $ 2,358.
The Altcoins are also pressed, with 5.6% falls from Cardano and Ripple (-5.5%). While the Litecoin rise in 9.8% and 2% of the hand of Polkadot and Shiba Inu stands out.
The doubts facing the investors of the crypto world
However, doubts persist in the market, especially due to external tensions. The falls in the cryptoactive market have occurred after the increase in global uncertainty, exacerbated by the announcement of tariffs by US President Donald Trump, who said that 25% tariffs to imports from Canada and Mexico “will continue as planned” and will begin to be applied in March.
Besides, The news is added that the United States is evaluating the export restrictions of chips to China, What generates more uncertainty, since these two issues are sensitive to cryptocurrencies and digital assets in general. On the one hand, each Trump tariff announcement has caused falls in the price of Bitcoin, and on the other, technological actions, especially those linked to artificial intelligence (AI), have shown a narrow correlation with the cryptoactive.
The strategists, such as Kathleen Brooks of XTB, warn that Uncertainty and volatility are increasing, what could be prelude to larger movements in stock markets. Chris Beauchamp, of IG, points out that the abrupt fall of cryptocurrencies is promoting a generalized sale of other assets and fear that large -scale volatility is being created.
The pressure from the institutional plane
The pressure is more evident in the institutional plane, as reflected in the output flows of the BTC listed funds (ETF) in cash, which on Tuesday closed with the largest net exit of their history, with 937.8 million dollars abandoning these funds. Since the beginning of February, net exits exceed 2,000 million dollars, which demonstrates the disinterest of institutional investors in these high -risk assets due to global economic uncertainty.
Therefore, experts believe that the next Economic data will be key to calming the restlessness of investors, especially given the possibility of a more restrictive Federal Reserve (Fed) of what was anticipated. Although the FED had previously trimmed its forecasts of loss of interest rates, it is now expected that at least two more cuts will occur this year, which has increased market expectations. In this context, the PCE consumption deflator report will be published this Friday will be a crucial indicator for the monetary policy of the Fed and for the direction of the markets.
Source: Ambito
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