Bitcoin’s price has taken a significant hit, falling to $91,180 in the past 24 hours, marking a 10% drop. This sudden shift has raised alarms among investors and analysts, with many questioning whether Bitcoin could plummet to $75,000 in the coming months. Data from Derive.xyz suggests a 22% chance of this occurring by March 28, adding to the growing uncertainty in the market.
The Impact of Trade Wars on Bitcoin’s Future
A primary factor contributing to Bitcoin’s potential decline is the escalating trade war between the U.S. and key global trading partners. Recently, the U.S. imposed new tariffs on goods from China, Mexico, and Canada, including a 25% tariff on Mexican and Canadian imports and a 10% tariff on Chinese products. These tariffs are expected to spur inflation, making it more challenging for central banks to reduce interest rates.
— Donald J. Trump (@realDonaldTrump) February 1, 2025
If inflation continues to rise and economic growth slows, Bitcoin’s price could take a hit. This comes at a time when the global market is already under strain, heightening concerns about Bitcoin’s stability.
Global Tensions Amplify Concerns
The situation has led to escalating tensions between countries. Former U.S. President Donald Trump defended the tariffs as a necessary move to safeguard national security, citing issues like illegal immigration and drug trafficking. In retaliation, Canada imposed its own 25% tariffs on U.S. goods, while China threatened legal action through the World Trade Organization. These international responses only add to the unease surrounding Bitcoin’s future.
Expert Predictions and Technical Indicators
Renowned financial expert Robert Kiyosaki recently warned of a sharp decline in Bitcoin’s value, and former BitMEX CEO Arthur Hayes echoed similar concerns. Hayes predicted Bitcoin could drop to $75,000 before staging a potential rally, with technical indicators suggesting a “double top reversal” pattern.
Key metrics such as the Relative Strength Index (RSI) have dipped below 50, signaling bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, further reinforcing the downward trend.
Also Read: Jack Mallers Pushes for U.S. Bitcoin Reserve, Calls Out Ripple’s Corporate Influence
Bitcoin must hold above $90,500 to avoid a steeper decline. If it fails, the next support level is at $85,000. On the upside, resistance sits near $95,000, with a recovery above $96,500 potentially signaling a return to bullish sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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