#Bitcoin in a dive: what happens to the queen of the cryptos
What happens to Bitcoins? Over the past month, the queen of cryptocurrencies has lost more than 20% of its value, but it has become worrying in the past few hours. Around 1pm (Italian time), Bitcoin was traded at $ 80,472, with the price also falling below the 80,000 threshold. The rises in recent months when - thanks also to Trump's victory - the currency has exceeded 100 thousand dollars by now. The drop, according to insiders, could be due to the fear of the new duties announced by the American president. The hypothesis of a brake on trade is wreaking havoc in the markets by convincing investors that it is better to focus on safer assets and less subject to sudden ups and downs.
The Analyst: "The price could even Reach 70 thousand Dollars"
As Simon Peters, eToro's crypto markets analyst, explained just a couple of days ago, Bitcoin "resisted relatively well to market uncertainty until the $ 92,000 level was broken, which had remained as support since November 2024. I suspect this caused a cascade of liquidations of positions, adding further downward pressure on the price. "
The past, the analyst points out, "teaches us that the price may still drop from here. Typically, retracements of 25-35% occur in the Bitcoin bull markets before finding a base and starting the next upside phase. The price has fallen by 20% compared to the historical maximum of 109,300 dollars. A 35% retreat would bring the price to $ 70,000. I'm not saying that the price will certainly drop so much, but it's possible. Although it is understandable that investors may feel frightened by volatility, retracements in the price of any asset class or instrument are normal and expected, and we should remember that we are still up 70% compared to this period last year. Investors with cash liquidity and who have a long-term belief in bitcoin can see this moment as an appropriate time to add additional holdings. "
