
Bitcoin (BTC), the leader of the cryptocurrency market, has significantly dropped in price after reaching a peak above the round figure of $100,000. A variety of factors have influenced the cryptocurrency’s price movements.
How Bitcoin is Performing
As of Wednesday morning, the price of Bitcoin against the dollar has stabilised above $84,000. Yesterday, the cryptocurrency experienced a slight increase thanks to positive news regarding the Trump family entering the BTC mining market.
Investor interest in Bitcoin was further supported by statements from Larry Fink, CEO of BlackRock, the world’s largest asset management company, suggesting that Bitcoin could potentially replace the US dollar as the global reserve currency.
Bitcoin Chart. Source: TradingView
Meanwhile, Bitcoin’s liquidation map indicates the risk of the cryptocurrency approaching the $82,000 and $84,000 levels. If Bitcoin reaches these levels, many traders may be forced to close their positions, which could result in sharp price movements and increased volatility in the market.
Bitcoin Liquidation Map. Source: coinglass
The Bitcoin fear index (Fear and Greed Index) remains in the red zone, reflecting investor concerns. This decline in sentiment is dampening Bitcoin’s investment appeal.
Bitcoin Fear Index. Source: alternative.me
A Volatile Week Ahead
Crypto community participants believe that this week could be turbulent. On April 2, US President Donald Trump is set to announce new tariffs on imports to the US, which he has referred to as "Liberation Day." The lack of specific details has left many investors waiting in suspense for more information.
Previously, 25% tariffs on car imports to the US were announced, which already affected the stocks of manufacturers like General Motors and Ford. It is expected that the additional tariffs could impact a wide range of products and influence financial markets.
Several representatives of the Federal Reserve will also speak throughout the week, including Chair Jerome Powell. Their statements may shed light on the current economic situation and the potential for interest rate changes. If the US economy shows improvement, markets may perceive this as a step towards a potential reduction in key interest rates. These changes could boost the investment appeal of cryptocurrencies.
Bitcoin’s Forecast
There is still a lot of optimism in the market, with many believing that BTC still has the potential to reach a new all-time high following the 2024 halving cycle. They are not concerned that Bitcoin is no longer mirroring gold’s movements, which continues to set new highs. Optimists also believe that the decoupling of Bitcoin’s movements from previous cycles does not mean that the cryptocurrency cannot resume its upward trend.
For instance, Quinten François believes that Bitcoin will follow the growth of global liquidity. He pointed out that Bitcoin is repeating the movements of this metric. This time, Quinten is confident that there will be no exceptions.
An optimistic Bitcoin forecast was also provided by crypto trader @nobrainflip. He believes that the peak of BTC’s cycle this year could occur in November or December. His forecast is based on calculations derived from analysing the cryptocurrency’s behaviour patterns in previous cycles. According to him, by then, the price of Bitcoin against the dollar could exceed $200,000.
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This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.