The cryptocurrency market seems to be facing another bog dip. Bitcoin (BTC) has fallen to the $64,000 price level, and other assets are following its trajectory. According to CoinGecko data, BTC’s price is down 4.5% in the last 24 hours, 4.9% in the last week, 8% in the 14-day charts, and 27.5% over the previous month. This marks BTC’s second dip to sub-$65.000 levels this months. Let’s discuss if we will face another cryptocurrency market crash, or is the dip temporary.
Will The Cryptocurrency Market Crash Further, Or Is It A Temporary Setback?
The cryptocurrency market has faced substantial challenges over the last few months. The market downturn started in October, which recorded the biggest single-day liquidation in crypto history. The October crash was triggered by macroeconomic uncertainty and geopolitical tensions. The market took another hit in early February of this year amid a liquidity crunch.
The latest cryptocurrency market crash could be due to President Donald Trump’s plans to raise global tariffs to 15%. According to Jeff Mei, COO at BTSE, a global blockchain firm,”We believe that the sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline.“
Furthermore, there is increased tensions between the US and Iran, which may have further led to investor worry. The cryptocurrency market is heavily subject to volatility and the ongoing macroeconomic uncertainties, geopolitical tensions, and a dip in liquidity, seems to be having a massive impact on investors. There is a possibility that Bitcoin (BTC) will continue its downward trajectory, with some anticipating it to fall below $40,000. BTC falling below the $40,000 mark will likely trigger a massive dip for the cryptocurrency market.
Also Read: OG Bitcoin Investors Are Taking Losses, Not Buying The Dip
Nonetheless, the dip could be an excellent opportunity for investors to buy cryptocurrency assets for discounted rates. Bitcoin (BTC) is expected to eventually breach the $1 million mark by the end of the decade. Buying now could bring massive returns in the future.
