Lost 67,000 dollars! Bitcoin continued to decline Mild selling pressure may lead to further pullback

Bitcoin has fallen to its lowest level since last Friday, showing a clear deviation from the soaring Asian stock markets, highlighting investors' lack of confidence in the continuous rebound of this cryptocurrency. As of the time of writing, Bitcoin has dropped more than 3%, to $66,617; Ethereum has dropped more than 4%, to $1,937. In contrast, the MSCI Asia Pacific Index rose 1.5% on Wednesday, hitting a historical high, and has continued to outperform the US and European markets so far this year. Emerging market stock indices have also reached record highs. Although market expectations for a Fed rate cut have risen again, cryptocurrencies have not been boosted. Since October last year, the market sentiment has been low and trading activity has been weak, highlighting the pessimistic atmosphere in the industry. Despite large Bitcoin investors starting to buy again, this cryptocurrency has failed to attract more buying interest, putting it at risk of further decline. Kaiko analyst Laurens Fraussen wrote in a report, "With no corresponding increase in trading volume, the price accelerated downwards to $60,000, indicating insufficient depth in the order book and a lack of willing buyers at intermediate price levels. This makes the crypto market more vulnerable to further downside even under mild selling pressure." Bitcoin had just experienced an especially brutal week last week, wiping out all gains since the end of 2024 when Trump won the US presidential election. Last Friday, Bitcoin fell to nearly $60,000, then rebounded over the weekend, hovering around $70,000 on Monday. However, due to bearish sentiment, Bitcoin started to fall again on Tuesday. Investors' risk appetite for cryptocurrencies such as Bitcoin remains limited. The Bitcoin derivatives market is still filled with bearish signals - the funding rate for Bitcoin perpetual contracts has remained below zero, indicating traders are still betting on the downside for this cryptocurrency's price, or requiring compensation to hold long positions. At the same time, open interest for Bitcoin perpetual contracts has not recovered from the decline since last October, highlighting the lack of confidence behind this rebound. According to Coinglass data, the current open interest has decreased by about 51% from the peak in October. Even though Bitcoin has rebounded from around $60,000 to $70,000, there is still no sign of a recovery in open interest. Andy Martinez, CEO of Crypto Insights Group, stated that since the crash on October 10 last year, market liquidity and depth have significantly decreased, prompting investors to reduce leverage and adopt more conservative trading strategies. "The market is still digesting everything that happened after October 10th."