Bitcoin Drops Below $79K—Is the Worst Yet to Come?

Bitcoin slipped below $79,000 on Monday, marking another tough day for the cryptocurrency market. Ethereum also saw a significant drop, falling under $2,000 for the first time since November 2023. Investors are growing uneasy as economic uncertainty, driven by new trade policies and tariff concerns, continues to weigh on financial markets.

How Low Can Bitcoin Go?

Market analysts believe Bitcoin’s slide might not be over just yet. Fundstrat’s experts predict that the leading cryptocurrency could dip as low as $62,000 before seeing a turnaround. Mark Newton, the firm’s head of technical strategy, had already forecasted this correction, describing it as part of a natural market cycle rather than a sign of long-term weakness.

Despite the current decline, Fundstrat maintains its bullish outlook, setting a year-end price target of $175,000 for Bitcoin. This suggests that while the short-term outlook is rough, many experts still expect a strong recovery later in the year.

Global Markets Show Mixed Signals

Bitcoin’s struggles come at a time when some global stock markets, like Germany’s, are performing exceptionally well. In contrast, U.S. markets, including crypto, are experiencing setbacks due to economic uncertainty and shifting trade policies.

Investors are closely watching the impact of tariffs, as these policies can influence inflation, interest rates, and overall market sentiment. Some analysts believe that once the market adjusts to these economic shifts, interest rates could stabilize, potentially boosting both traditional and digital assets.

Will the U.S. Fall Behind in Crypto Adoption?

While the U.S. grapples with regulatory uncertainty and economic challenges, other countries and even some individual states are taking steps to embrace Bitcoin as a reserve asset. If global leaders move faster on crypto adoption, the U.S. could find itself playing catch-up.

For now, Bitcoin remains in a volatile phase, with more short-term losses likely before any substantial recovery. While long-term optimism persists, traders and investors should brace for continued market turbulence in the weeks ahead.

Also Read: Could Bitcoin Become Part of the U.S. Economy? Trump’s Gold Card Plan Raises Questions