Amid economic instability and trade war concerns, the crypto market, including Bitcoin, is experiencing a period of correction. Bitcoin currently trades near $84,000, with market capitalization reaching $2.76 trillion.
Analyst Predicts a 90-Day Bear Market
Analyst Timothy Peterson suggests that Bitcoin's recent decline is relatively mild compared to past bear markets and is expected to last only 90 days. Despite the downturn, strong adoption trends may prevent a deep price drop.
Trade War Fears Impact Investor Sentiment
New tariffs imposed by U.S. President Donald Trump have led to retaliatory measures globally, raising fears of a prolonged trade war. This has affected investor sentiment, leading to a move away from riskier assets, including cryptocurrencies.
Retail Traders Already Invested
The lack of fresh retail investment activity also impacts Bitcoin's price. Most retail traders are already exposed to BTC, reducing the likelihood of a sudden capital influx. The narrative of Bitcoin as a safe haven asset is being challenged, as tariff news negatively impacts its price.
The cryptocurrency market remains volatile amid economic uncertainty and trade tensions. The main challenges in the near future are linked to changes in global trade policy and investor reactions to economic events.
