Bitcoin has recently faced a significant downturn, plummeting below $90,000 for the first time in over a month. This decline marks a 20% drop from its all-time high of $109,356, which was reached on the day of Trump's inauguration. Over the past five days alone, Bitcoin's value has decreased by nearly 9%. Analysts attribute this downward trend to various factors, including renewed concerns over Trump's tariffs affecting market sentiment and triggering sell-offs.
Adding to the turmoil, a massive $1.5 billion hack at Bybit has further destabilized the cryptocurrency market. This event, coupled with fears of inflation and economic uncertainty, has led to over $1.6 billion in liquidations. As a result, market sentiment has plunged into 'extreme fear,' according to the Crypto Fear & Greed Index.
Despite the current bearish outlook, some analysts remain optimistic about Bitcoin's long-term potential. However, the immediate future seems challenging, with potential support levels eyed at $81,000. Investors are closely monitoring the market for positive catalysts to drive recovery, amidst a backdrop of ETF outflows and market instability.
