Bitcoin’s price dropped below 80,000 USD on Sunday, experiencing a significant increase in volatility as fears of a stock market collapse clashed with optimistic price targets for the world’s most famous cryptocurrency.
- According to CoinTelegraph, Bitcoin fell below 80,000 USD on Sunday, marking a 3% decrease from the start of the previous week.
- Investing reported that Bitcoin was trading at around 78,761.5 USD per coin by Sunday afternoon, representing a retreat from recent highs near 110,000 USD.
The intermediate days saw sudden episodes of volatility due to US trade tariffs and concerns about a potential recession, causing significant losses in risky assets.
In the Bitcoin community, bold predictions emerged regarding short-term market behavior. Max Keiser, a prominent yet controversial Bitcoin advocate, forecasted that the cryptocurrency would reach 220,000 USD by the end of the month, as reported by CoinTelegraph.
“A stock market collapse like Black Monday (1987) will push Bitcoin to 220,000 USD this month, as trillions in wealth seek the ultimate safe-haven: Bitcoin,” he wrote on his X account.”
Traders exhibited divergent sentiments towards Bitcoin and stocks. After withstanding the tariff impact last week, many argued that upcoming days might even result in a notable price increase for Bitcoin.
Bitcoin’s volatility is decreasing while the VIX index in stocks closed at its highest level since the 2020 COVID-19 crash, noted popular trader Daan Crypto Trades in his latest analysis.
Trader Cas Abbe suggested that recent lows of 76,000 USD per Bitcoin might turn out to be a classic false breakout.
“This doesn’t seem different from the post-ETF drop and August 2024 collapse,” he told his followers on X.
However, analysts suggest that Bitcoin’s price could fall to around 70,000 USD over the next ten days, as a cryptocurrency pricing model indicates that US-led trade conflicts might alter investors’ risk appetite, according to CoinTelegraph.
In his latest X analysis, network economist Timothy Peterson warned that Bitcoin could revisit its 2021 historical peak.
The popular cryptocurrency’s price surged from around 40,000 USD in January last year when it began trading on Wall Street. In the first month of the previous year, the Securities and Exchange Commission (SEC) authorized the arrival of 11 Exchange-Traded Funds (ETFs), legitimizing the cryptocurrency market and pushing its price to 110,000 USD per unit.
