Bitcoin falls below $80K after brief resilience
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.
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Good summary, thanks!
I do hope we won't be going into a bear market, but it is still possible... I could see us going to ~50k, with everyone really thinking Bitcoin is dead this time, to then either do a sharp recovery or keep going up, but way slower than most expect.
What it all comes down to is how the world is rewired the next years, and of course Bitcoin is key in that process. The ossification and close to empty blocks is a concern, but at some point we should see transactions going up.
If not? Well then personally I will hunker down for the long slog, earning in crypto or cash to the extent that I can, so that I will be on the right side of freedom once the real recovery happens🙂
At least for me there is no going back to the fiat mines!
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