Bitcoin recovery risks ‘bull trap’ — Bloomberg

The recent rise in the price of bitcoin to a two-week high may turn out to be temporary, Bloomberg reports. Uncertainty in the market is keeping investors from buying, slowing the development of the bullish trend.

The lack of upward momentum, low trading volumes and macroeconomic tensions create the conditions for a potential 'bull trap'. Market experts quoted by the agency point to risks such as US tariff policy, inflation concerns and geopolitical instability. These factors continue to put pressure on bitcoin prices.

In addition, the cryptocurrency's funding rate has turned negative, which highlights the declining interest in leverage among traders. Falling borrowing costs for stablecoins such as USDT and USDC also indicate that investors are less risk-averse. Nevertheless, seasoned bitcoin holders continue to maintain their positions in hopes of higher prices, Bloomberg notes. This in turn makes the market more volatile.

Investors' attention also remains focused on Donald Trump's plans regarding import tariffs. They could have a significant impact on the market in the near future.