The cryptocurrency market is undergoing significant turmoil, with total value dropping to $2.4 trillion and Bitcoin's price plummeting to $75,000.
Current Market Situation
Bitcoin opened Monday's trading session with heavy losses, raising fears similar to past financial crashes. The cryptocurrency, which was nearing $100,000 just a few months ago, is now struggling to hold above $75,000. Analyst Michael van de Poppe described the situation as a "Black Monday," highlighting the sharp decline in Bitcoin and the broader crypto market.
Reasons for Bitcoin's Drop
Several factors are contributing to Bitcoin's decline:
* **Fear of a U.S. Trade War**
President Trump's strict trade policies are making investors nervous. His tough stance on tariffs is creating uncertainty, pushing many away from risky assets like Bitcoin.
* **No Response from the Federal Reserve**
Rumors suggest the Federal Reserve may call an emergency meeting to address market instability in the coming weeks, but until then, uncertainty remains high. If the Fed stays silent, Bitcoin and other assets may continue to fall.
* **Mass Liquidations**
A wave of forced liquidations has hit the crypto market. Over the past 24 hours, $471.6 million worth of Bitcoin has been liquidated. Long traders have lost around $409 million, while short sellers faced $62.3 million in liquidations.
Bitcoin's Outlook in the Coming Weeks
As highlighted by van de Poppe, Bitcoin is nearing a potential stabilization level with prices already down nearly 30% from its all-time high. The key support zone now lies between $70,000 and $75,000.
If Bitcoin can hold this level, it could see a strong recovery. However, if it breaks below, further downside may be on the horizon.
Van de Poppe remains optimistic for long-term investors, suggesting that buying Bitcoin at current levels could prove beneficial in the next 12–24 months.
Bitcoin is currently at a critical level, trading around $77,000, reflecting a 7% drop in the last 24 hours. If it stays above $70,000, it could bounce back soon. However, if it drops below, a bigger correction may occur.
