Bitcoin Faces Significant Decline as Economic Pressures Mount

Recent data indicates that Bitcoin’s (BTC) likelihood of dropping to $75,000 by March 28 has surged to 22%, up from 10% just a week ago. New tariffs imposed by the U.S. on Canada, Mexico, and China, along with inflation concerns, have led to volatility in the cryptocurrency market. Over the past four days, Bitcoin $105,284 has lost 11% of its value, plummeting below $93,000, while Ethereum (ETH) $2,519 has dropped under $2,200. Experts emphasize that both technical indicators and global economic developments are triggering this decline.

Global Economic Uncertainties

The additional tariffs imposed by the U.S. on trade partners are increasing the costs of imported goods. Tariffs of 10% on imports from China and 25% on goods from Mexico and Canada are escalating inflationary pressures. Consequently, weakened expectations for interest rate cuts by central banks have strengthened the U.S. dollar. The strengthening of the dollar, combined with reduced global liquidity, adversely affects cryptocurrencies viewed as risky assets.

Derive analysts have warned that these tariffs could reflect on consumer prices. Andre Dragosch, head of Bitwise Europe, stated that the contraction in money supply could shock financial markets. These factors are accelerating the exit of investors from the cryptocurrency market.

Technical Analysis and Expert Predictions

The appearance of a double top formation in Bitcoin charts indicates a target of $75,000. This technical signal showcases the dominance of sellers in the market. Some analysts, like Arthur Hayes, believe the decline will be temporary and foresee a new wave of increase afterwards. According to Hayes, Bitcoin could experience a stronger recovery after touching $75,000.

Regulatory steps by the SEC concerning Dogecoin $0.191782 (DOGE), Solana $158 (SOL), XRP, and Litecoin (LTC) have led to expectations of market movement. Official approval of these assets could enhance capital inflows. Potential positive market interventions by the Fed may also restore confidence in the cryptocurrency market.