The price of Bitcoin is currently around $104.000, following a notable correction that reflects the influence of geopolitical events and international tensions.
The leading cryptocurrency, which at its all-time high exceeded $111.000, is facing a series of movements in response to the uncertainty generated by the trade disputes between the United States and China, as well as the conflict in Ukraine involving Russia. Volatility in this global context has led investors to adopt a more cautious stance, reflected in market behavior and capital flows into digital assets.
PREPARE YOUR WALLET AND EXPLORE THE POTENTIAL OF BITCOINGlobal tensions shake the crypto market
The recent drop in Bitcoin's price is part of a trend that has been setting the global economy in the face of escalating geopolitical tensions. Rising tensions between the United States and China, amid trade disputes and mutual accusations of breaches of agreements, have generated unrest in traditional and digital financial markets, triggering sell-offs in Bitcoin and other cryptocurrencies.
Meanwhile, the conflict in Ukraine, which has escalated with more aggressive fighting in recent days and an escalation of international sanctions, has led to greater risk aversion among investors, who are seeking safe havens in times of uncertainty.
Since its all-time high, Bitcoin has undergone a significant correction that has brought its value to around $104.000 amid market volatility and caution.
Source: CoinGecko
An important aspect to consider in market analysis is how these events impact investor sentiment and capital flows into digital assets. According to data According to CoinShares' recent data, digital asset investment products saw inflows of $286 million last week, extending a seven-week streak of cumulative inflows to $10.900 billion. This is an eye-opening figure, as it indicates that, despite the price correction, institutional and general investor interest remains strong.
BUY BITCOIN EASILY AND FAST WITH BIT2MEHowever, it's also worth noting that total assets under management (AUM) fell from an all-time high of $187.000 billion to around $177.000 billion amid a downward trend in cryptoasset prices, reflecting volatility driven by global uncertainty, particularly related to US tariffs and sanctions.
A brief respite for Bitcoin as Ethereum leads crypto investment
The week began optimistically, as Bitcoin experienced strong inflows ahead of the unprecedented ruling by a New York court declaring the US tariffs imposed by Donald Trump illegal. This ruling generated an immediate market reaction, causing some cryptoassets, such as Bitcoin, to experience volatility. The court ruling prompted a reorientation of capital toward traditional stock markets, resulting in outflows from crypto-related investment products, as the firm's data shows.
Capital flows reversed midweek, ending the week with outflows of less than $8 million, according to CoinShares data.
For its part, Ethereum has emerged this week as the leading cryptocurrency in terms of investment.
The second-largest cryptocurrency by market capitalization saw inflows totaling $321 million, cementing a six-week streak of inflows totaling approximately $1.190 billion, its best performance since December 2024.
CoinShares notes that Ethereum's strength amid these turbulent times can be understood not only by its utility in smart contracts and decentralized applications, but also by the improvements introduced by Pectra, which have impacted the perception that ETH remains an attractive opportunity in the digital ecosystem.
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Finally, despite the outflow of investment flows from Bitcoin and the current correction in its price, analysts remain in consensus in considering that Bitcoin's bullish trend remains intact, and that volatility is a brief reaction to the current uncertainty.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
