Bitcoin recently fell below the $80,000 mark with prices reaching as low as $77,077 on April 7 after showing brief resilience amid concerns over U.S. President Donald Trump's new import tariffs.
Coinmarketcap
This decline occurred as global markets faced significant volatility, with U.S. stock indices plummeting and fears of a global economic downturn intensifying.
The U.S. stock market experienced significant losses, with over $8.2 trillion in market capitalization erased following the tariff news. Bitcoin, while declining, showed relative resilience compared to traditional markets.
Trump's tariffs have sparked concerns about a new trade war and economic slowdown. This has led to increased volatility in both crypto and traditional markets.
Bitcoin breached key technical support levels, signaling potential for further declines. Critical support levels are now around $74,000 and $57,000.
Crypto liquidations surged, with nearly $778 million in long positions liquidated in a short period, highlighting the bearish momentum.
Despite these challenges, some analysts remain optimistic about Bitcoin's potential as a hedge against economic instability. However, the immediate outlook remains uncertain due to ongoing macroeconomic pressures.
Short-Term: Bitcoin's immediate outlook is uncertain due to ongoing macroeconomic pressures. However, its relative stability compared to equities suggests potential for a breakout if macro conditions stabilize.
Long-Term: If Bitcoin continues to decouple from traditional markets and global liquidity conditions improve, it could position itself for a stronger recovery compared to equities.
Not Financial Advice.
It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)