Bitcoin Price Forecast: BTC Drops Below $84,000 Amidst Market Concerns
The Bitcoin price has dropped to near $83,900, reversing weekend gains following Trump’s Crypto Strategic Reserve announcement. The volatility has caused significant liquidations of traders, totaling nearly $978.62 million. Concerns about escalating trade tensions and diminishing institutional demand also weigh on the market, while economist Peter Schiff calls for an investigation into the President’s social media activity that he claims led to a major market manipulation. The outlook remains bearish with a potential retest of lower support levels.
Bitcoin’s price has fallen drastically, trading at approximately $83,900 on Tuesday, erasing gains made over the weekend. This decline follows U.S. President Donald Trump’s announcement of a Crypto Strategic Reserve which sparked a temporary rally turned into a sell-off. Consequently, 289,815 traders suffered liquidations, totaling over $978.62 million.
Analyst reports indicate that escalating trade tensions, due to Trump’s renewed tariffs on Canada and Mexico, have fueled investor apprehension. The excitement surrounding the inclusion of Ripple, Solana, and Cardano in the reserve has shifted, as scrutiny increases following the initial positive response.
Peter Schiff, an economist, has called for a Congressional investigation into Trump’s posts on Truth Social, alleging they contributed to a significant cryptocurrency market crash. He stated that this event could be classified as a major “pump and dump scheme” and seeks accountability on who had prior knowledge of the trading news.
Furthermore, institutional demand for Bitcoin has diminished, as evidenced by the significant outflow from spot Bitcoin Exchange Traded Funds (ETFs), totaling $74.20 million. Continued outflows could lead to more corrections in Bitcoin’s price, reflecting a general bearish sentiment in the market.
After experiencing substantial gains over the weekend, Bitcoin saw a sharp decline of 8.54% on Monday, with expectations that a continued downward trend could revisit a support level of $73,000. However, should there be a recovery, Bitcoin might challenge its recent high of $95,000.
The overall sentiment in the cryptocurrency market remains bearish, with Bitcoin’s dominance declining amidst market corrections. As traders react to recent news, caution urges the crypto community to remain vigilant to navigate these volatile market conditions effectively.
In summary, Bitcoin has demonstrated significant price volatility, exacerbated by President Trump’s announcement regarding the Crypto Strategic Reserve and rising trade tensions. The resulting market response has led to widespread liquidations and diminished institutional interest. Schiff’s call for congressional scrutiny highlights concerns surrounding market manipulations, while ongoing outflows from ETFs signal potential continued declines in Bitcoin’s valuation. The market outlook remains uncertain as traders assess support levels amidst this downturn.
Original Source: www.fxstreet.com
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