Bitcoin BTC $107,063.00 Mezo Wrapped BTC -2.93% Market capitalization $36.3 million VOL. 24 hours $1.99 billion has fallen below $ 108,000 amid rising geopolitical tensions and macroeconomic uncertainty, mainly due to trade disputes between the US and China. As of Tuesday, October 21, the price of the flagship crypto market fell by 2.6% per day to $ 107,854, according to The Block. The day before, the cryptocurrency briefly recovered to $ 111,200 after a three-day drop.
BTSE Chief Operating Officer Jeff May noted that volatility in the crypto market will continue as long as trade tensions between Washington and Beijing continue. According to him, the recent decline in prices is due to the fact that traders are reducing risky positions ahead of the meeting between Chinese President Xi Jinping and US President Donald Trump, which is scheduled for the end of October in South Korea. May added that even if an agreement is reached, it is unlikely that tensions will be completely resolved.
The deterioration in investor sentiment also affected the main altcoins: Ethereum ETH $3,863.00 Bridged Ether (StarkGate) -4.37% Market capitalization $93.78 million VOL. 24 hours $1.82 billion fell by 4.77% to $ 3,855, BNB BNB $1,069.78 BNB -5.11% Market capitalization $148.89 billion VOL. 24 hours $0.48 billion lost 5.36%, and Solana SOL $184.56 Binance-Peg SOL -4.25% Market capitalization $0.2 billion VOL. 24 hours $0.56 billion - 4.26%. Cryptocurrency token indices also showed a decline: GMBASE dropped by 4.82%, GMRWA — by 4.67%. Meanwhile, spot crypto funds recorded capital outflows: according to SoSoValue, investors withdrew $ 40.5 million from spot bitcoin ETFs and $ 145.7 million from ethereum ETFs. Last week, bitcoin funds already showed the second largest weekly outflow in history — $ 1.23 billion.
The Block’s fear and greed indicator is currently at 29 points, indicating that fear prevails among investors. «The biggest risk for crypto markets now is the unpredictability of macro events and trade negotiations. Markets can react to a single statement or tweet,» May emphasized. In his opinion, the smartest strategy now is to diversify assets and hedge risks.
Traders are awaiting the release of data on the consumer price index on Friday, which will be a key benchmark for assessing inflation. According to the CME FedWatch Tool, there is currently a 98.9% probability that the Federal Reserve will cut the discount rate by 25 basis points this month.