Bitcoin's price plunged below $80,000 for the first time in three months amid macroeconomic uncertainty triggered by proposed tariffs under Donald Trump's administration.
Key Developments
- Bitcoin (BTC) hit $79,752** on February 27, down **2.65%** in one hour, liquidating **$100.01 million in long positions (CoinGlass).
- Traders now eye $70,000 as the next potential support level.
- Institutional analysts remain bullish, with Standard Chartered predicting $200K by year-end.
Market Reactions and Analyst Insights
1. Liquidation Wave
Over $100 million** in long positions were wiped out within an hour as BTC broke below the **$82,000 support level. The last time Bitcoin traded at this range was on November 11, shortly after Trump’s election victory.
2. Trader Sentiment
- Dmac (Crypto Trader): "Dip buyers got rekt. $70K is my target."
- Rager (Anonymous Analyst): "A 30–40% drop during bull cycles isn’t uncommon."
- Polymarket data shows a 50/50 split on whether BTC will rebound or slide to $70K.
3. Macroeconomic Pressures
Uncertainty around Trump’s proposed tariffs and global economic shifts are cited as key drivers behind the sell-off. Bitcoin has dropped 26% since its all-time high of $109,000 on January 20.
Institutional Outlook
Despite volatility, institutions maintain long-term optimism:
- Geoffrey Kendrick (Standard Chartered): Projects BTC could reach $500K by the end of Trump’s potential second term.
- VC Perspectives: Bitcoin needs "organic buyers" to reignite upward momentum.
FAQs
Q1: Why did Bitcoin drop below $80,000?
A: Macro fears (tariffs, economic policy shifts) and leveraged long-position liquidations triggered the decline.
Q2: Is $70,000 the next support level?
A: Yes, traders are preparing for a possible test of $70K if bearish momentum persists.
Q3: Are institutions still bullish on Bitcoin?
A: Absolutely. Major banks like Standard Chartered predict $200K+ by 2025.
👉 Bitcoin’s Road to Recovery: Expert Takes
Note: This article is for informational purposes only and does not constitute investment advice. Always conduct independent research.
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