Bitcoin experienced a significant decline during Asian trading hours, dipping below $63,000 amidst a backdrop of renewed investor caution linked to President Donald Trump’s recent tariff announcements and concerns surrounding artificial intelligence. This downturn continues a troubling trend for the leading cryptocurrency, which has already dropped nearly 7% over the past week, reaching levels not seen since early February when prices nearly fell to the $60,000 mark, according to data from CoinDesk.
Experts have noted that this decline mirrors movements in equities, with renewed tariff-related uncertainties playing a pivotal role. Matt Howells-Barby, vice president at Kraken and host of Trading Spaces, highlighted that the cryptomarket is currently facing considerable pressure due to escalating geopolitical tensions. He indicated that $60,000 has emerged as a crucial support level for many traders, cautioning that a failure to maintain this threshold could lead Bitcoin to plummet into the mid-to-low $50,000 range.
On the broader market front, U.S. stocks experienced a downturn following Trump’s declaration of temporary 15% tariffs on imports, a rise from the previously announced 10% rate after a Supreme Court ruling invalidated parts of his tariff strategy. Concurrently, shares of companies viewed as vulnerable to the AI revolution have also seen increased selling.
Historically, Bitcoin has not found its bottom until the 50-week average price falls below the 100-week average, a phenomenon referred to as the bear cross. This particular crossing has historically marked the conclusion of major bear markets in Bitcoin, including those witnessed in 2022 and 2018. Current analysis indicates that the 50-week average remains significantly above the 100-week average, suggesting that the market might still be in for a deeper correction before any signal of stabilization appears.
As several experts indicated during the Consensus Hong Kong conference, the market could potentially slide further, possibly down to $50,000 or lower, before any significant recovery can be anticipated. The dynamics of these moving averages highlight a pattern where crossovers confirm prior market trends rather than predict future movements. This may seem counterintuitive, yet it aligns with the historical performance of these indicators, which have reliably marked the bottoms of bear markets in Bitcoin.
These developments underscore the fragility of the current market, with BTC’s trajectory remaining uncertain amid global economic pressures and shifts in investor confidence. As the situation evolves, traders and investors will be closely monitoring key price levels and overarching market trends.
