Bitcoin Keeps Losing Ground – Is $70,000 Next?

Amid rising global economic and geopolitical uncertainty, cryptocurrencies (especially Bitcoin) are once again at the center of discussions following a major market downturn. In just the past 24 hours, BTC has lost over 6.5%, hitting a new local low of around $78,000.

The last time Bitcoin reached these levels was in November 2024, during heightened volatility following the U.S. presidential election. However, the situation was different then, as Bitcoin had yet to reach its all-time high, fueled by optimism over the election of pro-crypto President Trump. As a result, the correction at that time didn’t seem as dramatic as it does now. 

Reasons Behind the Decline 

The current crypto market downturn is driven by both internal factors and broader global trends. One of the key pressure points has been the U.S. imposing tariffs on multiple countries, including Canada, Mexico, and China. The European Union also found itself targeted by Donald Trump’s policies, prompting an immediate announcement of retaliatory tariffs. This escalation has further unsettled investors, as the U.S. government effectively launches multiple trade wars.

Additionally, venture investor and Master Ventures founder Kyle Chasse points to hedge funds as another major factor behind Bitcoin’s decline. Many funds started selling off Bitcoin ETFs and closing futures positions on the Chicago Mercantile Exchange (CME) due to shrinking opportunities for arbitrage trading, which previously allowed for consistent profits. Research suggests that only 44% of all spot Bitcoin ETFs are held for long-term investment, while the rest are primarily used for speculative trading. 

Analyst Predictions

According to Ryan Lee, Chief Analyst at Bitget Research, Bitcoin may test the $76,000–$78,000 range during this correction, as well as the critical $75,000 support level. This level serves as a psychological trigger that could lead to capitulation among new investors, potentially marking a reversal point. If Bitcoin falls below this zone, the next key support level would be $70,000.

Related: Bitcoin Is Down, But Are There Any Sellers Left?

However, Ryan believes that such a deep decline is unlikely in the near future. A drop below $75,000—and especially below $70,000—would require new major fundamental catalysts that could trigger panic among investors. Possible scenarios include additional U.S. tariffs on the mentioned countries or an official decision to abandon the creation of a U.S. national Bitcoin reserve.

Other analysts also acknowledge the possibility of further downside. Raoul Pal, founder of Global Macro Investor, noted in his latest report that Bitcoin could potentially drop to $70,000. He previously predicted the start of this correction after Bitcoin peaked around $109,000, emphasizing that the pullback would be healthy for the market in the long run.

Similarly, well-known crypto analyst Miles Deutscher identified $70,000 and $60,000 as key support levels. Despite his short-term bearish stance, he believes that historically, the current market cycle still has the potential to push Bitcoin to a new all-time high.

Institutional Investors Are Still in the Game 

While many hedge funds use Bitcoin ETFs as a tool for speculative trading, major institutional players with long-term crypto strategies continue to accumulate Bitcoin. For example, Michael Saylor’s company, Strategy, has been steadily purchasing BTC throughout the past month. In theory, this trend of acquiring Bitcoin at a “discount” could make certain price levels more attractive and help stabilize volatility.

As a result, the market is now shaped by a complex interplay of macroeconomic factors, technical signals, and institutional activity. In the coming weeks, uncertainty may only intensify. 

That said, for professional investors with well-established risk management strategies and a strong tolerance for volatility, the current conditions may present a compelling opportunity for long-term accumulation.

Related: Bitcoin ETFs Face Historic Sell-Off—$938M Pulled in a Day