Bitcoin’s Slump Deepens Amid Growing Trade Concerns and Investor Worries
Bitcoin has experienced a significant downturn over the past week, dipping as much as 7.2% to $78,226 before recovering slightly.
This marks a notable 28% drop from its record-high of $109,241 set on January 20, as the market faces increased uncertainty and worries surrounding U.S. trade policies.
The latest slump comes amid rising caution in global financial markets, sparked by renewed trade tensions. U.S. President Donald Trump’s announcement of new tariffs—25% on Canadian and Mexican imports and an additional 10% on Chinese goods—has intensified fears of a trade war. China has vowed to take retaliatory action, which has sent shockwaves through investor sentiment. This escalating tension has led to a sell-off in risk-sensitive assets, including cryptocurrencies, which have been hit especially hard.
Zaheer Ebtikar, co-founder of Split Capital, noted a marked increase in selling pressure, with many large investors opting to exit the market. “There was definitely a lot more selling than usual, making it difficult to pinpoint exactly where the majority of the selling took place,” Ebtikar said.
The downturn has also seen Bitcoin fall below key technical indicators. For the first time since October, Bitcoin slipped below its 200-day moving average. Additionally, the 14-day relative strength index (RSI) moved into oversold territory, signaling further potential challenges.
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Traders are now awaiting clarity on Trump’s stance toward cryptocurrencies, with speculation swirling around whether the U.S. might start stockpiling Bitcoin. Stefan von Haenisch of BitGo Inc. stated, “Considering the broader economic environment, these market movements aren’t entirely surprising.”
Analysts warn that Bitcoin could face further declines if broader market sentiment continues to weaken. Mark Cudmore, Editor-in-Chief at MLIV, cautioned that Bitcoin’s future could include another steep drop, citing the $72,000-$74,000 range as a critical threshold that could spark a prolonged decline.
Some experts, like Ruslan Lienkha of YouHodler, suggest Bitcoin may find support around the $70,000 level, but they caution that further declines could occur if equity markets continue their downward spiral.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
