Bitcoin falls again amid tariff war uncertainty

ECB President "EU Will Experience Inflation When Responding to US Tariff War"
BTC and Altcoins Continue to Decline Amid Market Fear on the 21st
Experts Reveal Conflicting BTC Forecasts..."Recovery vs Downtrend"

Bitcoin (BTC) declined on the 21st due to tariff war uncertainty and the disappearance of positive factors.

This time, Europe responded to the spark of the tariff war thrown by Trump, the US President. Christine Lagarde, President of the European Central Bank (ECB), said at a parliamentary hearing in Brussels, Belgium on the 20th that if the trade war escalates with the European Union (EU) taking retaliatory measures against US tariffs, the Eurozone's growth rate could drop by up to 0.5 percentage points, and prices could rise by 0.5 percentage points.

Amid the fear of being caught in the aftermath of the US tariff war, asset markets declined. On the 20th, the Dow Jones Industrial Average, S&P 500, and Nasdaq indices closed down 0.03%, 0.22%, and 0.33% respectively.

The fear sweeping the asset markets continued to Bitcoin and altcoins. Bitcoin fell to $84,000, and altcoins that had rebounded the previous day also gave up their gains.

◇Bitcoin = At 4 PM on the 21st, the Bitcoin price on Upbit was 123,980,000 won. Bitcoin's dominance was 61.55%.

According to on-chain analysis platform Sigbit, the long and short betting ratios in the Bitcoin futures market were 61.26% and 38.74%, respectively.

Experts' views on Bitcoin were divided.

Crypto analyst Darkpost analyzed through a Cryptoquant contribution that "Binance's 1-hour Bitcoin futures net market value trading volume increased to $467 million, recording the highest this year" and "This suggests that traders' investment sentiment is recovering in the short term".

On the other hand, asset management firm Van Eck explained on its official blog that "Bitcoin has experienced a 30% retracement from its peak, maintained a low futures funding rate, and has seen the longest ETF-driven net capital outflow since its launch" and "While altcoins show a weaker trend than Bitcoin, Bitcoin's dominance remains largely unchanged. These data are threatening a Bitcoin bull market".

◇Rising Coins = At 4 PM on the 21st on Upbit, the cryptocurrency with the largest increase from the previous trading day was Layer Zero (ZRO), rising 17%.

The Layer Zero project specializes in 'cross-chain messaging', connecting different blockchain networks. Major investors include Coinbase Ventures and Binance Labs.

The Layer Zero project's utility token, Layer Zero, has a total supply of 1 billion.

◇Fear and Greed Index = The digital asset Fear and Greed Index provided by Alternative is maintaining the 'Fear' stage at 31 points. The fear stage (20-39) is a period of increased cryptocurrency price volatility and trading volume, indicating a price decline. There is a high possibility of short-term bottom formation, so caution is advised when buying.

The Relative Strength Index (RSI) for cryptocurrencies provided by Sigbit recorded 48.6, in a 'neutral' state. RSI determines the relative strength between upward and downward pressure on a specific asset price and is an indicator showing the overbought and oversold levels of a specific asset.

Reporter Seung-won Kwon ksw@blockstreet.co.kr