Despite the pomp of the recently concluded Crypto Summit led by President Trump at the White House, Bitcoin and other cryptocurrencies face a tough market, driven by macroeconomic instability triggered by the government’s persistent tariff policy.
On Monday, Bitcoin plunged to $76,600, while Ethereum also saw a dip, hitting a low for the first time since November 2024. This raises a worrying question: how far can Bitcoin’s price fall before it starts to recover?
At the time of publication, the price of Bitcoin was quoted at US$79,378.03 with a drop of 3.5% in the last 24 hours.
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According to Fundstrat, the outlook under a second Trump administration is far from rosy. America, for now, appears to be the big loser, as the report states: “At least for now, the short-term winner has been anything but America.”
The discrepancy in the markets is striking. While Germany’s stock market is showing strength, the US, including Bitcoin, is struggling. Fundstrat’s Sean Farrell shared a less than encouraging but not entirely hopeless forecast: “They still project a Bitcoin price of $175,000 by the end of the year. Although in the short term, they predict a further drop to $62,000 by the end of March.”
Fundstrat’s Tom Lee echoes this view:
“So Bitcoin has gone down. But it’s actually not a surprise to our clients because Mark Newton, our head of technical strategy, had already identified this trend in January. He was targeting $62,000 for Bitcoin by the end of March. So we’re on track for $62,000, but that’s not a bearish development, it’s just a pullback.”
Despite the technical and fundamental expectations, the community still maintains an optimistic long-term view. Many believe that once the market absorbs the impacts of Trump’s tariff policies, the outlook for the next ten years will be much more favorable for cryptocurrencies, which could quickly recover their value as stocks stabilize.
However, for now, the market’s support appears fragile, and more declines could be on the horizon, especially considering that Trump’s continued focus on cryptocurrencies could encourage other world leaders to invest in Bitcoin before the United States, potentially increasing global competition for reserves of the cryptocurrency.