Bitcoin Dips Further and Could Be in Trouble
Bitcoin (BTC) has been on a downward spiral for several days now and has investors worried about how far it will go before it turns around.
The token is now at $64,605 (BTC/USD) and has lost nearly 4% over the last week. The most alarming aspect of this bearish trend is that it started right as Bitcoin was closing in on $70K. The coin could not quite break that barrier before falling back and sliding as low as $62,528. It has recovered slightly from there but not by much.
Investors should be concerned that Bitcoin may not be able to break through $70K anytime soon. However, as the coin remains low right now, the trade volume is on the rise, up by 10% for the day. $39 billion in Bitcoin is trading hands every 24 hours, and that shows a healthy level of trading, but the long-term prospects for Bitcoin are in jeopardy.
If Bitcoin cannot get above the strategically important $70K level, it may lose many investors this year. 2024 was supposed to be the year that Bitcoin reached $100,000 for the first time, but that hardly seems likely anymore. It looks like Bitcoin will have plenty of trouble just setting a new record high.
Bitcoin Is Still a Key Political Talking Point
One thing that Bitcoin has going for it is that US politicians keep bringing it up for this election cycle. Donald Trump in particular has touted his future support for Bitcoin and talked about setting up a strategic Bitcoin reserve with all of the money that the government has seized in Bitcoin from criminals. If that does happen, that could boost Bitcoin value over the long run and be much more beneficial to the coin than the way Bitcoin is currently being treated by the government.
There have been promises of kinder regulations for Bitcoin buyers and sellers too, and we will have to wait and see if those pan out or if they are simply empty election promises. Whatever happens with Bitcoin following this election, it is significant that this is the first time that Bitcoin or cryptocurrency as become a major political talking point during an election cycle.
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