The cryptocurrency market recently experienced a correction, with Bitcoin, the largest cryptocurrency by market capitalization, suffering a notable decline in value.
Bitcoin price touched the $91.000 level recently, after a 13% drop in value. Although it has recovered in the following hours, the cryptocurrency is still trading below the $100.000 level.
This recent correction, which has caused liquidations in the order of $ 2.200 million dollars, was triggered by the announcement of new trade tariffs by US President Donald Trump. The announced protectionist measures affected global financial markets, creating uncertainty and risk aversion among investors.
Source: CoinMarketCap
According to experts, the correlation between traditional markets and cryptocurrencies is becoming increasingly evident, so geopolitical tensions and political decisions can have a direct impact on the price of these assets, including Bitcoin.
Fears of a global economic slowdown in the face of new tariffs may have led investors to unwind positions in assets considered risky.
The market's reaction to uncertainty
The recent fall in the price of Bitcoin cannot be understood without considering the global context and the market's reaction to economic uncertainty. The imposition of trade tariffs by the United States generated a wave of nervousness among investors, who began to liquidate their positions in volatile assets such as cryptocurrencies.
Over the past 24 hours, roughly $2.200 billion worth of leveraged positions in Bitcoin and other cryptocurrencies were liquidated, with 92% of these liquidations being trades betting on a price increase. Coinglass data shows Bitcoin liquidations are around $450 million, while Ethereum liquidations are over $510 million.
Source: coinglass
The abrupt fall in BTC price was also fueled by the increasing correlation between Bitcoin and traditional markets. When shares of tech companies like Nvidia fell by 13%, this negatively impacted the crypto market sentiment, highlighting how events in the conventional financial realm can trigger swift and drastic reactions in the digital world.
External factors that fueled BTC's fall
In addition to trade tariffs, other external factors have contributed to the fall in the price of Bitcoin. The unveiling of a new AI model last week by a Chinese company also sparked bearish sentiment in the tech sector, resulting in significant losses for companies like Nvidia and creating a domino effect that affected cryptocurrencies.
From a technical perspective, experts warn that failure to close above the critical $100.000 level could lead to further declines to even lower levels. However, it is crucial to consider the emotional aspect of the market as well. Investors tend to react with panic to sharp declines, which can lead to further selling pressure. However, this emotional behavior can be both a catalyst for further declines and an opportunity for those who see value in lower prices. As some investors exit the market in the face of uncertainty, others may see this as an opportunity to acquire assets at discounted prices.
Kiyosaki: “The world’s best assets are on sale”
On his X account, Robert Kiyosaki, author of the book Rich Dad, Poor Dad, has shared his perspective on the recent fall of Bitcoin and other assets. Despite the crash in the markets, Kiyosaki believes that now is an ideal time to buy, stating that “the best assets in the world are on sale.”
Kiyosaki attributes the fall to new tariff measures imposed by President Donald Trump, anticipating that this could lead to a migration of capital towards Bitcoin, gold and silver. However, other analysts, such as Jaime Merino, CEO of Bitwise Technologies, argue that Bitcoin could fall even further if there is a crash in the stock market.
While it is true that an event such as the imposition of new tariffs can cause a significant short-term drop, it is important to look at the long-term situation. The blockchain technology underlying Bitcoin is still in development, with constant improvements that could increase efficiency and mass adoption. And, as Matt Hougan has said, growing institutional adoption and the entry of large investors suggest potential long-term growth for the market-leading cryptocurrency, despite short-term volatility. The development of new applications and the ecosystem around Bitcoin can also boost its value in the future.
Ultimately, volatility is an inherent part of cryptocurrencies, and the key lies in taking a long-term view and understanding the various factors that influence their price.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
