Bitcoin has dropped below $90,000 for the first time in a month, driven by macroeconomic factors.
Trump Tariffs and Corporate Demand Concerns
QCP Capital attributes the recent drop in Bitcoin’s price to President Donald Trump’s new trade policies. These measures, including customs duties on imports from Canada and Mexico and restrictions on Chinese investments in the US, have increased economic uncertainty. This has led to cautious trading of risky assets like cryptocurrencies. Additionally, there has been significant institutional demand for Bitcoin, financed largely through equity-linked bond issuances by companies like Strategy. However, QCP warns that this funding source may be nearing saturation, potentially limiting further institutional demand.
Cautious Outlook for BTC
With Bitcoin struggling to maintain key support levels and institutional buying momentum likely slowing, QCP offers a cautious outlook on Bitcoin’s short-term prospects. The next few days could be crucial in determining if Bitcoin will break above $90,000 or continue its downward trend.
The Bitcoin market is currently under pressure from macroeconomic factors and uncertainties, as market participants watch developments closely.
