Joao Wedson, CEO of cryptocurrency analysis firm Alphractal, warned investors that Bitcoin is at a critical support level.
In his statement, Wedson argued that Bitcoin should not fall below the $87,500 level.
“BTC should not lose the $87,500 level, this is the last support point. This level is based on a strong metric called Alpha Price, which is based on on-chain behavior. We are still above $95,000 at the moment. However, if $87,500 is broken, it is very likely that the $75,000 level will also be lost. If this support holds, a strong base will be formed,” he said.
“I would put my stop just below $87,000. If that level is broken, losses could be limited,” Wedson said.
The analysis published by Alphractal also stated that economic uncertainties in the US have reached historic highs. According to the company’s report, the US Economic Policy Uncertainty Index has risen to a new record level in 2025. The main reasons behind this increase are listed as follows:
- Excessive customs duties: With the trade wars launched during Trump’s second term as president, import duties of up to 145% began to be applied in strategic sectors.
- Debt limit crisis: The debt limit was fixed at $36.1 trillion on January 2, 2025. This brought with it technical default concerns.
- Monetary uncertainty: The Fed kept interest rates steady at 4.25–4.50% and postponed interest rate cut plans due to high import inflation.
- Loss of confidence in the dollar: Protectionist policies and financial sanctions have damaged the dollar’s reputation as a safe haven.
- Regulatory volatility: Artificial intelligence, antitrust regulations, ESG policies, and sudden changes in the energy space have thrown the business world into uncertainty.
- Geopolitical tensions: The Russia-Ukraine war and new crises in the Middle East have affected supply chains.
- Budget impasse: Persistent disagreements over spending plans have increased volatility in financial markets.
*This is not investment advice.
