The Bitcoin price is facing substantial downward pressure, with analysts forecasting a potential drop to $70,000. Arthur Hayes, co-founder of BitMEX, attributes this to macroeconomic influences from President Trump. A recent three-day price decline is noted as the highest since the FTX incident, driven by uncertainty stemming from Trump’s lack of action on crypto issues.

The Bitcoin market faces extreme downward pressure, fueling speculation that a bear market has commenced. Analysts hold mixed views; while some anticipate a reversal in prices, others forecast a potential decline to $70,000, potentially negating gains made after the recent US election rally. Notably, Arthur Hayes, co-founder of BitMEX, has articulated a bearish outlook, projecting a further drop in Bitcoin’s value to between $70,000 and $75,000.

Hayes referenced a 2-hour Bitcoin price chart from BitMEX, illustrating potential reasons for this decline linked to macroeconomic factors influenced by President Trump. He indicated the onset of a cooling phase, where prices may regress to pre-election liquidity levels following previous surges. This phase involves declining and consolidating prices as the market seeks stability.

The demand zone appears critical, marked in blue between $76,000 and $65,000, where substantial buying interest could arise to avert further declines. Hayes emphasized that Bitcoin’s trajectory toward $70,000 largely depends on Trump’s fiscal policies, particularly his budget and debt ceiling decisions. Failure to enact a budget that elevates spending could incite further market capitulation, leading to panic selling by investors.

Moreover, should Trump’s authority within the Republican Party diminish, increased market uncertainty may exacerbate the downturn. A reduction in the debt ceiling could undermine market liquidations, resulting in heightened price volatility. Hayes concluded that the market must enter a phase of retracement, suggesting it is prudent to wait and observe.

Recent data from MetaEra indicates that Bitcoin’s latest three-day drop represents the steepest decline since the FTX crisis of 2022. The cryptocurrency endured a 12.6% decrease this week, lowering its price to $86,227. Sentiment across the market appears to have soured owing to President Trump’s inaction regarding his commitments to the crypto sector, fostering uncertainty and decreased market confidence.

In summary, Bitcoin’s price is under significant pressure, with projections indicating a possible decline to $70,000. Influential factors include President Trump’s fiscal decisions and overall market sentiment. A cooling phase characterized by retracement is expected as traders await clarity. The recent drop marks the highest decline since the FTX collapse, reflecting broader market discontent over unfulfilled promises regarding cryptocurrency initiatives.

Original Source: www.tradingview.com

Related posts:

Bitcoin’s Price Plummets: Evaluating Market Volatility and Future Outlook Bitcoin Price Forecast Amid Government Sell-Off Fears and Leverage Moves Bitcoin Poised for a Potential Rally Beyond $100k Ahead of Trump’s Inauguration Bitcoin Declines to $84,900 Amid Tariff Imposition; Mixed Results for Altcoins