Mohamed Hassan, Executive Director at Rafah Asset Management, said that Strategy's sale of over 3,500 Bitcoin is a negative factor for the market, especially since the strategy the company had been adopting over the past years was based on not selling Bitcoin under any circumstances.

Hassan explained in an interview with Al Arabiya Business that the company used to finance its purchases through continuous bond and equity issuances, so the recent sale contradicts the message it had previously promoted about permanently holding the digital asset.

The dollar is stable ahead of US inflation data, and the yen is under pressure.

He added that this factor is not the only one affecting the market, noting that Bitcoin no longer trades as a safe haven as it was previously perceived, but rather moves more like speculative stocks, being affected by rising interest rates and monetary policy tightening. He pointed out that this behavior was clearly evident during last June.

He emphasized the importance of following US inflation data, whether the Consumer Price Index (CPI) or Producer Price Index (PPI), explaining that higher-than-expected numbers could mean continued inflationary pressures and a lack of decline at the required pace despite current interest rates. He indicated that this could push the Federal Reserve to further monetary tightening, which could increase Bitcoin's volatility.

He noted that Bitcoin has been moving within a clear price range for several months, with major support near the $59,000 level, while main resistance is around $66,000. He added that breaking through the $66,000 level and holding above it could open the door for further gains, especially if inflation data comes in lower than expected.

In contrast, he stressed that the $59,000 level represents an important psychological and technical support point that investors are closely watching. He pointed out that any inflation data higher than expected, combined with Bitcoin's failure to hold this level, could push the digital currency to record further declines and drop to lower levels.

Bitcoin fell during yesterday's trading in Asia, affected by rising oil prices following the new US strikes on Iran, which reignited concerns about the return of inflationary pressures and potential US monetary policy tightening, according to Bloomberg.

The largest cryptocurrency dropped by up to 2.4% to $62,600, falling below its 200-week moving average, a technical level that some analysts see as an indicator of a continued downtrend, while Ethereum fell by about 2.5%.

Richard Galvin, Chairman of DACM, a digital asset investment firm, said the selling wave came alongside a decline in US stock futures and rising oil prices due to escalating tensions between the United States and Iran.

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