Bitcoin's Momentum Slows as Geopolitical Risks Mount

The Bitcoin market is experiencing a slowdown in momentum and demand activity after a period of volatility. Over the last four trading sessions, price fluctuations have decreased significantly, averaging around 1.00% per day, compared to the 5.00% daily swings seen recently.

This decline in volatility reflects a loss of aggressiveness in demand and suggests that the market may be entering a more neutral or indecisive phase. Several factors are contributing to this environment, including rising geopolitical risks and the potential for a more aggressive Federal Reserve.

The CME Group probability matrix now shows a 68% chance of interest rates increasing to around 4.00% at the next policy meeting in September. This could favor dollar-denominated investments as a relatively stable alternative to risk assets, potentially affecting Bitcoin's price.