Bitcoin and the Global Cryptocurrency Market Decline

Bitcoin and the global cryptocurrency market faced a sharp decline as concerns over the U.S. economy pushed investors into panic mode. Bitcoin dropped to $76,000, marking its lowest level in four months. This sudden drop caused massive liquidations, with traders losing $952 million in just 24 hours.

Bitcoin Dips Below $80K

Bitcoin has been on a losing streak for five days, falling from $80,000 to $77,000. Analysts believe this drop is due to rising fears of a U.S. recession, which now stands at a 40% chance.

Meanwhile, speculation surrounds former President Donald Trump’s policies, which may be influencing market movements that could push the Federal Reserve into cutting interest rates. Market expert Anthony Pompliano suggests recent stock market instability, partly caused by Trump’s tariffs, could pressure Fed Chair Jerome Powell to lower borrowing costs.

The 10-year Treasury yield has decreased from 4.8% in January to 4.21%, leading many to believe that the Federal Reserve may soon adjust its monetary policy. This adjustment could significantly impact both the stock market and cryptocurrencies.

Bitcoin’s Next Move: Recovery or Further Drop?

Bitcoin has been falling for weeks, dropping to $76,900, its lowest level since November 2024. However, it still holds slightly above the 50-week Exponential Moving Average (EMA), which may indicate a potential recovery.

If selling continues, Bitcoin could decline further to $73,750, a crucial support level from March 2024. Conversely, if buyers step in and push the price above $80,000, BTC could recover and aim for $85,000.