The post Why is Bitcoin Dropping? How Low Will BTC Price Go? appeared first on Coinpedia Fintech News
Bloodshed in the crypto market doesn’t seem to be stopping as nearly $700 billion has been wiped out. In the past eight days, Bitcoin has fallen from $99,000 to $79,000, losing all the gains it made from the hype around President Trump’s pro-crypto policies. But what is causing this sudden drop, and how low can Bitcoin go?
Bitcoin Hits a Four-Month Low
Bitcoin, the biggest cryptocurrency, has fallen more than 5% in the last 24 hours, hitting a four-month low of $79,263. One major reason for this drop is growing fear in the market due to President Trump’s tariff threats, which have created uncertainty in the economy.
At the same time, the Crypto Fear and Greed Index has fallen to 21, its lowest level in nearly three years. This shows that many investors are scared and unsure about the market.
Short-Term Holders Lose Over $2 Billion
Many of the recent Bitcoin losses come from short-term holders (STHs) who have sold their Bitcoin in panic. In the last three days alone, these holders have lost $2.16 billion.
- Investors who bought Bitcoin in the last week lost $927 million.
- Those who bought in the last month lost $678 million.
- Holders who had Bitcoin for one to twelve months lost $257 million.
- Even those who bought in the last 24 hours lost $322 million.
This shows that many new investors are losing confidence and rushing to sell.
Meme Coins Under Regulatory Pressure
The U.S. SEC recently said that meme coins are not securities. While this sounds like good news, it made the situation worse. Many meme coins rely on hype and social trends, and with Bitcoin dropping, meme coins have also crashed, adding more panic to the market.
Disappointment with Trump’s Crypto Promises
Bitcoin’s decline is also linked to disappointment with President Trump’s crypto plans. Many investors expected strong pro-crypto policies, but things are moving slower than expected. This has led to selling pressure on cryptocurrencies that gained from Trump’s support.
Altcoins Also Suffer Heavy Losses
Bitcoin’s drop has affected the whole market. Other major cryptocurrencies have also fallen. Ethereum (ETH) is down 7.5%, XRP has dropped 8.2%, and Solana (SOL) has fallen 9%. This shows that investors are losing trust in the crypto market.
How Low Can Bitcoin Go?
Bitcoin’s price drop has made traders worried. Some believe Bitcoin needs to fill a gap near $80,000 before recovering. Meanwhile, Crypto analyst AlphaBTC thinks that if Bitcoin fills this gap, it could start a new rally. But if it doesn’t, the price could fall further to $73,000.
At the same time, Bitcoin options data shows that more traders are betting on Bitcoin dropping to $70,000. This suggests that some investors believe the market could get even worse.
