Bitcoin prices have experienced a notable 6% drop from their all-time highs, with a massive liquidation event approaching $200 million on Friday, while sparking fresh speculation about the cryptocurrency’s future trajectory.
Analyst of “Bull Theory” attribute The downturn due to current geopolitical developments, particularly President Donald Trump’s announcement of significant tariffs and export restrictions on Chinese goods, is particularly impacting key industrial and strategic materials.
Impact of tariff risk on Bitcoin price
Analysts say the impact of these tariffs will be multifaceted, posing risks such as disrupting supply chains, accelerating inflation and slowing global trade.
Several factors are contributing to Bitcoin’s current decline. First of all, there are some points to note. risk rotation Investors are seeking refuge in safer assets such as cash and gold.
Second, looming tariff risks could lead to higher inflation and delay expected rate cuts. Third, the unwinding of leveraged short positions is impacting alternative cryptocurrencies and leveraged Bitcoin holdings, exacerbating the downtrend.
Finally, the surrounding uncertainty trade policy creates an ‘uncertainty premium’, forcing the market to demand a discount until a clearer picture emerges.
Analysts recall that the threat of 2025 tariffs caused a significant collapse in Bitcoin prices and other cryptocurrencies, similar to past market movements. These recent moves appear to be acting as a liquidity test to test the market’s resilience and wipe out weak hands before entering a recovery phase.
Analysts predict positive outlook for BTC
Looking ahead, bull theory suggests that market participants should be wary of BTC’s nearest major support zones, especially around the $116,000 mark, where buyers have historically returned.
Furthermore, they argue that the response of policy makers will be important. if federal reserve system If (the Fed) shows an appetite for monetary easing, a sharp rebound could follow. Conversely, market confidence could be restored if President Trump’s rhetoric on tariffs weakens or becomes clearer.
In the short term, analysts expect continued downside volatility due to a possible retest of support levels. However, the medium-term outlook suggests that smart investors may start accumulating Bitcoin as the dominant narrative weakens.
In the long term, the outlook for Bitcoin price looks promising due to expected interest rate cuts and the market’s historically strong performance in the fourth quarter. As liquidity returns and market momentum builds, Bitcoin’s future path is often in an uptrend.
Will BTC reach $130,000 by the end of the month?
Market expert Timothy Peterson agreed, pointing out that artificial intelligence (AI) simulations suggest that half of Bitcoin’s October gains may have already been realized.
analysis presented Earlier this week, there was a 50% chance that Bitcoin price would end the month above $140,000, and a 43% chance that it would end the month below $136,000.
However, following the recent decline in Bitcoin prices, the latest AI predictions suggest an expected price at the end of the month of around $130,000, which represents an 11% increase from the current price of around $117,300.
Nevertheless, there is currently an 18% chance that ‘Uptober’ will reach a negative conclusion, adding further uncertainty to the market outlook.
Featured image from DALL-E, chart from TradingView.com
