A Week of Decline for Bitcoin Could Drop Value to $97K
Bitcoin has backpedaled this week after reaching a recent record high, and the coin may have trouble if it falters much longer.
Quick overview
- Bitcoin has experienced a significant decline, dropping from $109,137 to $104,128 in the past week.
- Concerns over new tariffs and selling pressure from investors have contributed to Bitcoin's downward trend.
- Despite predictions of reaching $150K or $200K this year, Bitcoin's current price below $105K jeopardizes these forecasts.
- Elon Musk's recent announcement regarding a new venture did not positively impact Bitcoin's price, which continues to face challenges.
Live BTC/USD Chart
Over the past seven days, Bitcoin (BTC) has suffered considerable decline. It has dropped from $109,137 to its current price of $104,128 (BTC/USD) due to a number of factors.
After having lost 5.18% over the last week, Bitcoin could be in trouble. There is concern that the coin could retreat as far as $97K after recently hitting an all-time high of $111,970. Bitcoin’s price has been pushed downward by selling pressure, as many investors were waiting for a record high price to sell off their coins. The value of Bitcoin has also been hurt by new tariffs, including taxes levied at the European Union and at Chinese imports of aluminum and steel.
BTC/USDThe same tariff fears have plagued the stock market, and while Bitcoin and the cryptocurrency industry stayed high for longer, they too have been hit by worry over the trade war.
Bitcoin in the Danger Zone
Now that BTC has dropped below $105K, it is in danger of losing many of its investors. Although the coin has managed to hold onto its value above the $100K mark, it needs to do more than just that if it is going to hit some of those sky-high predictions that analysts have made for Bitcoin for the remainder of the year. Several notable analysts and investors have predicted that Bitcoin will reach $150K or even $200K this year, but if Bitcoin stays below $105K much longer, that will seriously impact its chances to hit those high marks before the end of the year.
Elon Musk recently announced a new venture into the cryptocurrency-adjacent tech space. He is promoting a new service called XChat that offers “Bitcoin-style encryption,” according to him. Despite Musk’s previous powerful impact on the cryptocurrency space with even vague announcements related to his investments, this announcement fell flat. The needle on Bitcoin’s price hardly moved at all, and the price of Bitcoin has actually decreased since that announcement.
Bitcoin is benefitting from a new regulatory framework being built for stablecoins, but that boost the coin saw after news broke on better government regulations has died down. Since Bitcoin is not a stablecoin, it would only benefit indirectly, but new crypto regulations can be exciting for the market and could mean that the United States government is committed to protecting cryptocurrency and ensuring its free and unhindered trade.
What happens to Bitcoin over the next 24 hours will be crucial to whether it pushes back to a record high again soon. The coin has lost ground all week long, but it is still very high for the month. BTC could use its current elevated price as a launching pad for a new record high, but the recent retreat could continue as well, bringing Bitcoin below $100K quickly.
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