As the leading cryptocurrency Bitcoin experiences consecutive declines, analysts warn of further declines.
The Crypto Fear & Greed Index, a key index that tracks Bitcoin and cryptocurrency sentiment amid panic selling by investors, is at extreme fear at 20.
The extreme fear situation is considered a buying opportunity as it shows that people are very anxious and the price is at the bottom, while investors are wondering what is needed for the rise to start.
At this point, Matrixport analysts said in their latest report that a stronger catalyst is needed to revive the bull trend in Bitcoin.
As tariff war fears grow, Donald Trump’s actions regarding BTC and crypto are becoming increasingly secondary and failing to initiate the expected rise.
Matrixport analysts noted that the reaction remained lukewarm despite events such as the White House Crypto Summit and US President Donald Trump signing an executive order to create the Strategic Bitcoin Reserve.
Perpetual funding rates for Bitcoin, Solana (SOL), and Ethereum (ETH) are still hovering in the single-digits, suggesting a moderate market reaction.
As a result, Matrixport analysts emphasize that Bitcoin will need a stronger catalyst to resume its upward trend.
“The White House Crypto Summit and approval of the US Strategic Bitcoin Reserve failed to trigger a rally in the crypto market as perpetual-term funding rates remained near single digits.
This suggests a lack of enthusiasm from retail investors, which contrasts sharply with the enthusiasm seen in April and December 2024 when funding rates rose into the high double digits.
Even the momentum surrounding Trump’s inauguration was relatively weak, a clear sign that a more significant catalyst is needed for Bitcoin to launch its next bullish leg.”
*This is not investment advice.
