The Bitcoin price has dropped sharply, trading at $64,900, down more than $2,500 from previous levels. As Asian markets opened, Bitcoin fell about 5%, breaking below the psychological threshold of $65,000. This decline reflects growing concerns among traders and investors about global market instability.
Bitcoin price reached a high record of over $125,000 on March 10. Since then, the cryptocurrency has lost nearly 47% of its value compared to its all-time highs. This year alone, Bitcoin has seen a decline of roughly 26%, signaling a challenging period for the digital currency market.
Jeff May, a digital currency market analyst at the blockchain-focused company BTSE, explained the causes behind the drop. He noted, “Donald Trump’s decision to raise tariffs on goods worldwide caused traders and investors to sell their Bitcoin holdings.” According to May, the new tariffs increased fears of global economic slowdown, prompting investors to reduce exposure to volatile assets like Bitcoin.
Analysts say the recent drop in Bitcoin is part of a broader market reaction. Many investors feared further declines in Bitcoin prices and other digital assets, leading to quick sell-offs to minimize losses. This sell-off accelerated the drop, pushing Bitcoin below $65,000.
Despite the sharp decline, some market watchers remain cautiously optimistic about Bitcoin’s long-term prospects. They argue that while short-term volatility affects Bitcoin prices, the digital currency continues to hold value as a hedge against inflation and economic uncertainty.
Bitcoin’s recent fluctuations highlight the sensitivity of digital currencies to global economic and political developments. Traders and investors are advised to monitor both international markets and regulatory announcements closely, as these factors continue to influence Bitcoin prices
