Bitcoin’s recent dip below $87,000 has raised questions about its future trajectory. After breaching $100,000 a few months ago, Bitcoin is now stuck in a period of sideways trading.
However, Bitcoin isn’t the only crypto asset affected by selling pressure; altcoins are also seeing prices fall. Wider market concerns about consumer confidence and inflation are putting pressure on both the stock and cryptocurrency markets.
Tariff Threats Add to Crypto Market Uncertainty
The overall market mood is further complicated by concerns about new tariffs the U.S. government is planning, specifically targeting Canada and Mexico.
While the market had grown somewhat used to tariff threats before, it now appears that these measures will proceed, adding additional pressure to an already fragile market. Experts like Gareth Soloway, Chief Market Strategist and President of Verified Investing, have pointed to critical technical indicators suggesting a possible downturn.
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Analyst Sees Echoes of Past Bitcoin Corrections
In an interview with David Lin, Soloway said that Bitcoin’s current performance mirrors previous market corrections.
If it continues on its current trajectory, Bitcoin could experience a drop, similar to the correction from $65,000 to $30,000 during the last bear market.
What’s Next for Bitcoin?
The top cryptocurrency is now at a crucial point. Should the downtrend persist, Bitcoin could find support around the $73,000–$75,000 range.
Although Bitcoin’s volatility remains a constant, a 15% decline in the past week is still within the historical norms for the cryptocurrency, as price swings of this size are typical.
Related: Crypto Slump: Altcoin Prices Fall — Are VCs & Traders Finding Deals?
Bitcoin’s Link to Stock Market
A key point in Soloway’s analysis is Bitcoin’s connection to broader financial markets. While many Bitcoin enthusiasts claim the cryptocurrency is independent of stock market movements, Soloway believes a strong link between the two.
As risk assets like stocks decline in value, Bitcoin often follows the same trend, proving that investor sentiment impacts both asset classes in similar ways. When the stock market weakens, Bitcoin feels the same sell pressure.
Despite the short-term volatility, Soloway remains positive about Bitcoin’s long-term prospects as an alternative to fiat currencies. Soloway does not foresee a total collapse of Bitcoin but predicts a return to the $75,000 level before starting a rally.
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