Kraken VP: Recent BTC dip reaffirms bearish market trend

The recent correction in Bitcoin has reaffirmed the overall bearish trend in the cryptocurrency market, according to Matt Howells-Barby, a vice president at Kraken. He noted that since a sharp decline on Oct. 10 of last year, the market has consistently shown significant asymmetric downside risk, reacting sensitively to negative news while showing limited gains on positive developments. Howells-Barby explained that while BTC was recently positioned at a key support level with potential for further upside, its upward momentum was quickly broken by emerging geopolitical issues. However, he observed that the correction was limited to about 3.5%, suggesting some traders are maintaining their positions in anticipation that President Trump might ease tariff threats, similar to last year's tensions with China. He concluded that market volatility could increase with any statements suggesting either an escalation or de-escalation of the tariff conflict between the U.S. and the EU.