Crypto markets have recently dropped their lowest prices in three months, reversing most of the gains following the success of the US president. Bitcoin has slightly held up to the $ 92,000 level, which has held in support since November 2024, has been damaged. The price then quickly fell to $ 80,000, where support was found.
The emotion in the crypto market has weakened, as signed by the crypto fear and greed index, which dropped from a level of 55 (neutral) to less than 10 (intense fear) last month. It is currently in 34.
The high crypto relationship with the traditional market means that bitcoin and greater crypto asset prices are also affected by uncertainty around tariffs and what they can say for the US economy in the immediate future.
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Moreover, events specific to crypto, such as falling from recently-only Bybit exchange hackWhich is described as the largest crypto heist in history, and record outflows from the Bitcoin ETFs area, has also contributed to the recent collapse of crypto asset prices.
Trump’s recent announcement that the US is advancing in creating a strategic crypto reserve has provided assistance in crypto asset prices, with a bitcoin rally up to $ 95,000 price levels. However, despite Trump’s promise in Stockpile Bitcoin and other crypto assets, it is not yet clear how such a reserve will work, how it will benefit taxpayers, and if there will be any crypto asset purchases. This uncertainty has led to a pullback on the price of Bitcoin, which is currently standing around $ 90,000.
In my opinion, we’re in Crossroads now. Location of financial conditions can mean crypto assets and greater risk prices higher from it. US Secretary of Treasury Scott Bessent recently has reaffirmed the administration’s plan to overthrow interest rates to help the struggling Americans. However, further noise around tariffs or the crypto reserve plan that does not meet community expectations may cause Bitcoin prices to decline. We need to see which narrative proves stronger in the weeks and months to come.
Usually, we see retracements of 20-35% in the Bitcoin Bull markets before a base is found and the next leg is higher. The $ 80,000 level at which bitcoin price recently fell to a decline of 28% out of $ 109,300 all-time high, so there’s a chance we may have seen low.
On the other hand, if the price is still falling due to the reasons mentioned above, a 35% decline from all times high will put a price to $ 70,000 before any base is potentially generated and the next leg higher begins.
While I understand that investors may feel scared because of the huge price movement, the prices of the price of any type of or instrument are normal and expected, and we must remember that we are still significantly from this time last year.
Investors with ready cash and a long -term belief in Bitcoin can see it as an opportunity to add more to their overall handling.
