Rajagopal Menon, Vice President of WazirX, noted that the recent downturn in Bitcoin has breached its robust support level of \(65,000, marking the onset of a corrective phase for the cryptocurrency. Presently priced at \)64,223, it signifies a marginal 0.12% decline compared to the previous day. The geopolitical tensions in the Middle East and the relationship between the S&P 500 and Bitcoin’s price fluctuations add further complexities, as the market sentiment in the crypto sphere reflects that of the broader economy.

Expressing apprehensions about a potential deeper correction, he pointed out that the next support level is anticipated to be around $61,000. The increased US interest rates have triggered concerns regarding liquidity within the cryptocurrency market. Nonetheless, institutional investors are actively engaging in Bitcoin investments through Exchange-Traded Funds (ETFs).

Furthermore, he emphasized that Ethereum is nearing a breakthrough of its 20-day moving averages, a development that could drive its value towards the 3400 threshold before facing resistance. Failure to exceed this level might lead to a retracement of the token back to the 3k levels.