Bitcoin Price Declines 12.6% This Week Amid Bear Market Concerns
The Bitcoin price is facing significant downward pressure, leading some analysts to suggest the onset of a bear market. Key points include:
- Predictions vary, with some forecasting a drop to $70,000, potentially erasing gains from the US election rally.
- Arthur Hayes, co-founder of BitMEX, anticipates further declines in Bitcoin's value, estimating a drop between $70,000 and $75,000.
- Hayes cites macroeconomic factors related to US President Trump as potential triggers for this price decline.
- A cooling phase may occur, characterized by a retracement to pre-election liquidity levels.
- Critical support is identified between $76,000 and $65,000, where buying interest could stabilize prices.
- Hayes links Bitcoin's potential decline to Trump's budget decisions, suggesting that failure to increase spending could lead to market capitulation.
- Market uncertainty may grow if Trump's influence wanes within the Republican Party, exacerbating the downturn.
- Recent data shows a 12.6% decline in Bitcoin over three days, marking the worst crash since the FTX collapse in 2022.
- This sell-off is attributed to negative market sentiment and disappointment regarding Trump's inaction on cryptocurrency initiatives.
