Bitcoin’s price fell over 6% in just 24 hours, dropping below $84,000 on Wednesday. This decline marks its lowest level since November 2024, when Bitcoin had surged due to election-related excitement. The market is currently bearish, according to trader IncomeSharks.
The drop in Bitcoin’s value is linked to rising trade war tensions. President Donald Trump announced new tariffs: 25% on Canada and Mexico, 10% on China, and an additional 25% on the European Union. This news negatively impacted the stock market, causing the S&P 500 to decline and erasing over $500 billion in market capitalization.
As the stock market reacted to these tariffs, Bitcoin’s price fell below $84,000, reaching lows of $82,131, according to CoinMarketCap. The decline was also influenced by significant selling pressure from exchange-traded funds (ETFs).
Major firms like Fidelity, Ark, and Grayscale sold off their Bitcoin holdings. BlackRock also contributed to the sell-off by transferring millions of dollars worth of Bitcoin and Ethereum to an exchange and offloading $150 million in Bitcoin.
While Bitcoin briefly recovered to above $84,000, the overall market sentiment remains weak. Analysts suggest that a retest of the $80,000 mark is possible. Crypto analyst Rekt Capital shared insights indicating this potential decline.
Market analysts believe that investors are preparing for a possible rebound in inflation, which could lead to price increases for various goods.
