Bitcoin (BTC) fell to around $75,000 early Wednesday before a slight recovery, directly influenced by the enforcement of sweeping global tariffs by Trump. Ether (ETH) plummeted by 10%, leading the decline among major cryptocurrencies, with tokens such as XRP, DOGE, and BNB all suffering losses exceeding 5%. The overall market cap witnessed a drop of 6%, compounding a seven-day decrease of nearly 15%.
Key Takeaways:
- Bitcoin has recently been trading below $75,000 due to the implications of new tariffs.
- U.S. Treasury bonds registered a selloff, causing a noticeable rise in 30-year yields, hinting at potential economic challenges.
- Analysts advise caution for the short-term, though there is hope for Bitcoin’s recovery should macroeconomic conditions improve.
Amid these tariff escalations, some traders foresee Bitcoin’s price potentially tumbling to $70,000. “For investors, the immediate forecast suggests caution, but there is a possibility to see Bitcoin fall to $70,000–$75,000 if trade tensions further escalate, which may also present an opportunity for long-term investment,” Ryan Lee, Chief Analyst at Bitget Research, mentioned in a Telegram message.
Market Insights:
- As the tariffs on Chinese imports were raised to 104%, concerns over a long-term trade conflict are growing, which could hinder global trade and supply chains, along with the economic growth of the U.S.
- Rising yield rates may imply falling bond prices, increasing government borrowing costs and straining the existing federal deficit.
In continuation, some market participants speculate that the recent selloff is connected to a significant liquidation from a large investor, marking a drastic shift in market dynamics. Jim Bianco, founder of Bianco Research, observed, “The surge in the 30-year yield over a short period indicates a forced liquidation rather than deliberate managerial intervention.”
Conclusion:
Long-term, if positive conditions stabilize or pro-crypto policies emerge, Bitcoin could potentially rebound to between $95,000 and $100,000 by late 2025, joining a continued upward trend as market dynamics shift with institutional support.
