Bloomberg crypto reporter Emily Nicolle says that Bitcoin is still a high-risk product that moves with changes in the economy. “Bitcoin’s price action remains highly correlated with Wall Street movements,” Nicolle said on Bloomberg TV. This means that it is vulnerable to changes in the economy and investor sentiment. Bitcoin has been volatile along with big stock indices showing that it is more of a risk-on asset than a stable store of value. People who want to invest in Bitcoin should pay close attention to economic trends since Bitcoin’s short-term price changes are often affected by financial uncertainty.
Bybit Hack and Crypto Setbacks
The latest $1.5 billion Bybit hack has made Bitcoin’s fall even worse, which is making the cryptocurrency market even less stable. Nicolle called this a “rough period” for digital assets because traders and investors don’t trust them as much.
People often consider Bitcoin the “bellwether” of the cryptocurrency market, which means that bad news in the field has a big effect on its price. The Bybit incident has also made buyers less likely to buy Ethereum because they are worried about security holes in all blockchain networks.
Political and regulatory uncertainty
Nicolle also said that political unpredictability was a big reason for Bitcoin’s rise and fall. Many investors were hoping that the Trump administration would make regulations easier to understand, but so far, big policies that support crypto have not emerged.
Institutional investors have avoided stablecoins because of a lack of clear laws and regulations. This has kept Bitcoin from having a more stable rally. Putting in place rules that are good for Bitcoin could really help its price and popularity.
Bitcoin Market Outlook and Next Move
The $70,000 support level is a key psychological and technical mark that investors are monitoring closely. Options markets are highly positioned around this price point, and if they fall below it, there may be more pressure to sell.
Conclusion
Bitcoin’s growth depends on the economy as a whole and what the government decides. Bitcoin could have a big comeback if the Trump government makes crypto-friendly rules. But until there is more clarity on regulations, Bitcoin will stay a risky asset that goes up and down with Wall Street.
