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Why bitcoin’s plunge could have further to go despite its recent bounce - MarketWatch

1. Bitcoin is down over 20% from its peak two months ago. 2. Analysts predict further declines may occur despite recent bounce. 3. Macroeconomic uncertainty, especially tariffs, weighs on Bitcoin's potential recovery. 4. Liquidity may improve if the Fed slows its balance sheet reduction. 5. CryptoQuant's index shows bearish sentiment for Bitcoin market conditions.

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FAQ

Why Bearish?

Recent declines paired with macroeconomic uncertainty and low Bull Score suggest further downside risks. Historical behavior indicates significant price drops during similar bearish sentiment periods.

How important is it?

The article reflects major market dynamics and investor sentiment directly affecting Bitcoin, highlighting crucial economic indicators and technical levels.

Why Short Term?

Market responses to Fed decisions can induce volatility quickly, affecting Bitcoin's price in the near term. Analysts predict Bitcoin may drop further to around $70,000 shortly.

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