Selling pressure has increased again in the virtual currency market.
Bitcoin fell as much as 5% to below $64,000 after US President Donald Trump announced plans to raise global tariffs to 15%.
Bitcoin has fallen by about 5% in the past 24 hours, falling to $63,970, according to market data. In the past 24 hours, a total of $616 million worth of positions were liquidated in the cryptocurrency market, of which $524 million were long positions.
Bitcoin entered a sharp correction phase after surpassing the $125,000 level in October last year. Major cryptocurrencies also started the new year weakly, losing 26% of their value since the beginning of the year. Since the October peak, losses have exceeded 47%.
A chart showing the recent decline in BTC price.
According to experts, the current decline in stock prices is not caused by a single factor. Global trade tensions and geopolitical risks are dampening investor appetite.
Jeff May, chief operating officer (COO) of global blockchain technology company BTSE, said the sudden tariff hike prompted investors to sell crypto assets in anticipation of a deeper market downturn. May also noted that an increased U.S. military presence around Iran could increase the risk of regional conflict and negatively impact global trade flows.
Markus Thielen, research director at 10x Research, said the recent decline was due to lower liquidity and low market confidence rather than a single headline. Thielen said the current situation is typical of a bear market characterized by low trading volumes and uncertainty.
Thielen said that downside risks still exist due to the upcoming US midterm elections and macroeconomic uncertainty, and argued that the possibility of Bitcoin falling further towards the $50,000 level should not be ignored. Stronger volume and confidence signals are needed for a sustained bottom, the analyst said.
*This is not investment advice.
