2025-02-27
Bitcoin price now drops to $84,800. Bitcoin’s price is facing pressure, and experts predict it could drop to $70,000. Arthur Hayes, co-founder of BitMEX, warned that Bitcoin might experience more market turbulence.
A key metric, "Bitcoin Exchange
Inflow," which tracks how much Bitcoin is sent to exchanges, has surged.
When large amounts of Bitcoin move to exchanges, it often signals that
investors are preparing to sell.
Recently, this metric showed three
spikes, each above 5,000 BTC, in one day. Shortly after, Bitcoin’s price
dropped to $86,900. This suggests that big investors may have been selling due
to panic or profit-taking.
A drop in consumer confidence in the
U.S. is one reason. People are worried about inflation and possible new tariffs
if President Donald Trump imposes.
Trump has proposed a 10% tax on all
imports and possibly a 60%+ tax on Chinese goods and tariffs impose on other
countries as well.
Experts warn this could lead to higher
prices for everyday goods, hurting households. Businesses may also increase
their prices, causing more inflation.
Bitcoin recently fell to its lowest
price in three months, pushing the total crypto market value down to $2.91
trillion.
Arthur Hayes pointed out that hedge
funds are trading Bitcoin in a way that could cause further price drops.
These funds are making money by holding
BlackRock’s iShares Bitcoin Trust (IBIT) while shorting Bitcoin futures
(betting that Bitcoin will fall).
If Bitcoin keeps dropping, these funds
might be forced to buy back their short positions, adding more selling
pressure.
Hayes predicts Bitcoin could fall to $70,000
if the current market trends continue.
Bitcoin’s price has dropped for three
days straight, reaching $82,256 before rebounding slightly.
At the same time, Bitcoin ETFs
(Exchange-Traded Funds) are seeing large outflows, meaning investors are
pulling their money out. This, along with Trump's threats of a 25% tariff on
the EU, has made the market even more uncertain.
While some analysts see this as a
“buying opportunity,” others warn that Bitcoin’s price could still drop
further, possibly to $71,000 - $80,000.
