Bitcoin’s long-term price outlook remains technically constructive despite Monday’s sharp reversal, according to some analysts, as durable ETF flows offset short-term volatility.
The firm’s analysts likened the current setup to an “early-stage risk-on rotation,” noting that strong structural flows from spot Bitcoin exchange-traded funds are proving more durable than short-term positioning.
Sean Dawson, head of research at on-chain options platform Derive, also expressed caution to Decrypt.
“I think short-term volatility will dominate,” Dawson said, pointing to the 25-delta skew trend lower as evidence that investors are increasingly buying puts for downside protection.
Still, investors need to keep a close eye on three macroeconomic and geopolitical catalysts that could sustain high volatility in crypto and broader financial markets.
The Greenland dispute intensified Monday when President Trump sent a text message to Norwegian Prime Minister Jonas Gahr Støre.
“As regards the Nobel Peace Prize, I have clearly explained, including to President Trump, what is well known, the prize is awarded by an independent Nobel Committee, and not the Norwegian Government,' Støre said.
Trump has repeatedly argued he deserves the Nobel Peace Prize for his foreign-policy efforts, openly expressing frustration over the award’s refusal to recognize his role in past diplomatic agreements.
He also threatened to impose tariffs of up to 25% on imports from several European countries from February 1 unless they dropped their objections.
“Historically, tariff threats and retaliatory measures have created significant headwinds for digital and other risk assets,” Farzam Ehsani, CEO of crypto trading platform VALR, told Decrypt in a statement. “The market is now pricing in the possibility that prolonged escalations could disrupt previous trade agreements, strain international relations, and further pressure risk assets. Early signs of on-chain stabilization have not offset the macro headwinds facing digital assets.”
