What's Behind the Bitcoin Drop? Analyst Explains! - Coin Bulletin

The panic selling in the markets that started after President Trump's recession and tariff statements caused sharp declines in many cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH).

The cryptocurrency market started the week with sharp declines. On Monday night, Bitcoin and Ethereum experienced significant losses across the market. Bitcoin approached the $70,000 level with a nearly 6% loss, once again reaching a critical point. Ethereum dropped to $1,820 with an 11% sharp decline, marking its lowest level since October 2023.

In altcoins, the losses were much more severe. Dogecoin (DOGE) experienced the largest loss among the top 10 cryptocurrencies with a 14% drop. Ripple (XRP) saw a 10.7% decrease, while Cardano (ADA) lost 10.2% of its value.

The selling wave in the market is not limited to just crypto. According to CNN, the threat of US President Trump to raise the tariff on products from China to twenty percent and the threat of additional tariffs on Canada and Mexico has caused panic in the markets.

Presto Research Research Director Peter Chung expressed that the drop was due to the market's weekend concerns about Trump's Bitcoin reserve announcement. Chung stated that this situation in the markets was more psychological than concrete news, saying, "Investors are quite concerned about Trump's escalation of tariffs on China and the potential risk of a recession. This has increased panic selling in the market."

Chung also advised investors to be patient and recommended waiting for the decisions of central banks. Highlighting the FOMC meeting next week as a significant turning point in the markets, Chung said, "Although Powell is not expected to change the interest rate, markets will look for clues about interest rate cuts in his statements. This situation could appease concerns in the markets."

Peter Chung noted that the market has not yet fully seen the bottom level, stating that $70,000 level could be an important support level for Bitcoin. According to Chung, the current 36% correction could be a quite healthy pullback for the bull market after the $110,000 peak.