Bitcoin Price Risks Amid Trade War: Could It Fall to $75K by March 2025?
Bitcoin has experienced a 10% drop in value to $91,180, raising fears of a further decrease to $75,000 by March 28, according to data which cites a likelihood of 22%. The decline is largely attributed to inflationary pressures from U.S. trade tariffs. Key technical indicators show bearish trends and crucial support and resistance levels that could influence Bitcoin’s price movements in the coming weeks.
Bitcoin’s recent price decline of 10% has raised concerns of further drops, bringing its value down to $91,180. Current on-chain options data indicates a 22% likelihood that Bitcoin could plunge to $75,000 by March 28, influenced by inflationary pressures linked to the ongoing U.S. trade war. Technical indicators suggest bearish trends, with vital support levels identified at $90,500 and $85,000, while resistance is observed around $95,000.
The primary risk to Bitcoin’s value appears to stem from escalating trade tensions between the United States and its key trading partners. New tariffs imposed by the U.S. on imports from nations such as China, Mexico, and Canada are expected to exacerbate inflation. As tariffs remain at 25% for imports from Mexico and Canada and 10% for Chinese goods, inflation may hinder the ability of central banks to lower interest rates, thereby impacting Bitcoin negatively.
In defense of the tariffs, former President Trump noted their necessity for national security and to combat illegal immigration and drug trafficking. However, retaliatory measures from Canada and potential legal actions from China at the World Trade Organization have heightened global concerns regarding trade relations, further elevating worries about Bitcoin’s stability.
Experts express caution over Bitcoin’s potential vulnerability, with Robert Kiyosaki previously warning of a potential drop linked to the tariffs imposed, when Bitcoin was priced around $101,000. Similarly, former BitMEX CEO Arthur Hayes forecasted a decline to $75,000 prior to a significant market rebound. At present, Bitcoin’s trading pattern reflects a potential “double top reversal,” suggesting a financial downturn may occur.
Key technical indicators paint a bleak picture for Bitcoin’s immediate future. The Relative Strength Index (RSI) has dipped below 50, indicating a pronounced bearish sentiment, while a bearish crossover has been observed in the Moving Average Convergence Divergence (MACD) indicator. Essential support levels are crucial for Bitcoin, as a drop below $90,500 could see further declines to $85,000. Conversely, resistance near $95,000 may determine Bitcoin’s ability to regain bullish market momentum.
The analysis of Bitcoin’s price dynamics reveals the impact of external economic factors, specifically the U.S.-China trade war, on cryptocurrency valuations. Teriffs imposed by the U.S. government on imports are expected to raise inflation, prompting concerns over the broader financial implications. Understanding the market’s technical indicators alongside these geopolitical events provides clarity on potential price movements and investor sentiment within the cryptocurrency sphere.
In summary, Bitcoin’s current trajectory suggests a significant risk of falling to $75,000, influenced primarily by external trade pressures and rising inflation concerns. With a 22% probability indicated by recent data, the cryptocurrency is in a bearish phase marked by crucial technical indicators and support levels. Traders and investors should remain vigilant to ongoing market developments, particularly relating to trade relations and inflation forecasts, as these factors could dictate future price movements.
Original Source: coinpedia.org
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