The cryptocurrency market experienced a sharp decline due to rising concerns about the U.S. economy, impacting Bitcoin.
Reasons Behind Bitcoin’s Decline
Uncertainties in the U.S. economy have been a significant contributor to Bitcoin’s recent value loss. Experts argue that President Donald Trump’s policies, such as tariffs, have pressured the Federal Reserve to consider interest rate cuts. Market analyst Anthony Pompliano noted that Trump’s actions have created instability in the stock markets, putting further pressure on Fed Chairman Jerome Powell.
Bitcoin Price Analysis and Commentary
Despite Bitcoin’s drop to $76,900, maintaining its position above the 50-week Exponential Moving Average (EMA) is seen as a positive signal. However, if selling pressure continues, the critical support level of $73,750 from March 2024 may be tested. Analysts warn that breaking this level could lead to a more severe decline.
Cryptocurrency Market Outlook
If Bitcoin remains above $80,000, the possibility of a recovery may return to the table. In this scenario, Bitcoin could aim for a target of $85,000. Movements in market liquidity and upcoming statements from Federal Reserve officials will play crucial roles in determining the short-term trajectory of the cryptocurrency market.
The current economic situation continues to significantly impact the cryptocurrency market. Market attention is focused on the Federal Reserve's decision and government actions to stabilize the economy.
