Bitcoin’s price plummeted to around $85,000 per bitcoin on Tuesday, down 21% from its all-time high of almost $110,000. However, the cryptocurrency has bounced back as traders wait for a major legislation update and consider Elon Musk’s proposed Doge dividend stimulus checks.
Analysts warn that bitcoin remains at a “critical juncture” after nearly 90 days of consolidation. The next major move will likely be dictated by macroeconomic trends and could be decisive.
A recent sell-off led to record near-$1 billion worth of funds being pulled from U.S. spot bitcoin exchange-traded funds (ETFs). Experts predict that the market could still have some way to fall.
U.S. President Donald Trump’s threats of tariffs have spooked investors, sparking fears of a global trade war and economic uncertainty. The Federal Reserve has been forced to pause its planned interest rate cutting cycle due to inflation concerns.
The release of Nvidia’s fourth-quarter earnings is expected to provide a catalyst for the bitcoin price and crypto markets. A strong expectations beat could lift tech and crypto markets, while a miss could reignite the meltdown. Analysts believe that the outlook for next year will be influenced by Trump’s new curbs on Chinese investment and the development of new AI models.
Consumer confidence is shaken, with people nervous about what the next few months could bring after a pause in rate cuts.
Source: https://www.forbes.com/sites/digital-assets/2025/02/26/bitcoin-at-a-critical-juncture-as-crypto-braces-for-a-major-price-shock