The cryptocurrency market is experiencing a significant decline. Bitcoin has dropped below $87,000, Ethereum is trading around $2,400, and most altcoins are also in the red. What caused this correction and when can we expect a recovery?
Macroeconomic factors
One of the key factors affecting the cryptocurrency market is global economic instability.
US trade tariffs. Recent statements from the US presidential administration regarding new tariffs on imports from Canada and Mexico have raised concerns among investors. Moreover, the US threatened 100% tariffs on BRICS countries if they refuse to settle in dollars. This has created tension in financial markets and impacted crypto assets.
To what levels can the market fall?
The market is currently on the brink of important support. If Bitcoin fails to hold above $85,000, a further drop to $80,000 or lower is possible. Ethereum may also fall to $2,200.
When to expect a recovery?
Despite the current decline, many experts believe that this is a temporary correction. Anthony Scaramucci, head of SkyBridge Capital, predicts that Bitcoin could reach $200,000 by the end of 2025. For this to happen, it is important:
Stabilization of the global economy
Resolution of trade conflicts
As long as the market remains under pressure, investors should exercise caution and take into account the high volatility of cryptocurrencies.
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