Bitcoin (BTC) Keeps Falling! So How Long Will It Continue? Analysts Explain!
Bitcoin ($BTC) and altcoins, which started the new week with a decline, continue to deepen their fall.
Bitcoin fell as low as $63,000, while major altcoins, including Ethereum (ETH), also experienced significant declines.
This decline is attributed to a combination of uncertainty surrounding the Donald Trump administration’s tariff policies and rising risk aversion due to escalating geopolitical tensions between the US and Iran.
With this decline, Bitcoin is currently trading approximately 50% below its all-time high of $126,080 from five months ago. However, according to analysts, a 50% drop from the peak does not necessarily mean that the uptrend in Bitcoin has been broken.
Analysts also note that the decline is not due to a structural collapse, pointing to trade policies, interest rates, and the use of leverage.
Speaking to Decrypt, LVRG Research Director Nick Ruck and $BTC Markets analyst Rachael Lucas said that the drop in Bitcoin price does not indicate a structural collapse.
The duo notes that the decline stems from a combination of macroeconomic pressures, including renewed increased tariffs, risk aversion in equities and cryptocurrencies, and persistently negative ETF inflows.
Ruck and Lucas emphasize that the short-term outlook is not optimistic, that they expect the ongoing correction to be prolonged, but that the structural foundation remains strong.
Ruck added that he expects ultimate stability to be around $60,000, followed by a gradual recovery.
Finally, analyst Justin D’Anethan noted that given the current uncertain environment, the realized price of $55,000 could be tested. He added that after the current 50% drop, falling below $60,000 isn’t that significant and might even present a better opportunity to lower the average cost and buy.
*This is not investment advice.
