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Bitcoin’s price continues to hover around $97,700, largely influenced by a decline in U.S. markets. The altcoin sector is also entering a new downturn, with traders struggling to maintain their positions in a bleak environment. Recent comments have further fueled this sense of despair among altcoin investors, prompting a closer examination of the current market dynamics.
Potential Declines for Bitcoin (BTC)
Bitcoin 
$109,992 is experiencing fluctuations around $97,250, and while it fails to uplift altcoins during rises, it consistently paints their charts red with each decline. In a recent market evaluation, TheFlowHorse presented a graph suggesting that those optimistic about a price increase might be mistaken. If their predictions hold true, BTC could face a more significant correction, potentially leading altcoins into a situation reminiscent of the drastic downturn in 2020.
CryptoQuant analysts pointed to a concerning dip in Bitcoin’s network activity, which is currently at its lowest in a year. Activity has decreased by 15% since its peak in November 2024, with the index hitting 3,760, the lowest since February 2024. The total daily transaction count has dropped significantly, down to 346,000 from a record 734,000 in September 2024.
This decline is largely attributed to a sharp reduction in the usage of RUNES. Low network activity is reflected in Bitcoin’s mempool, which has seen a 99% decrease in transactions waiting to be included in a block since late last year. Analysts suggest that Bitcoin’s fair value could range between $48,000 and $95,000, indicating a potential overvaluation.
Impact of U.S.-China Trade Relations
As the week draws to a close, discussions between Trump and the Chinese President are anticipated. However, recent retaliatory actions from China have dampened hopes for resolution, which can also be seen in Bitcoin’s price movements. U.S. imports from China have declined by eight percentage points since 2018, now constituting only 13.5% of total imports, marking the lowest dependency in 21 years.
This situation suggests that potential trade conflicts may not pose as significant threats as previously feared. Meanwhile, Mexico’s share of U.S. imports has increased to 15.5% and imports from Canada have reached a ten-year high of approximately 13.5%.
