Bitcoin's Price Plummets Amidst Trade War Fears

Bitcoin's price is bracing for a potential drop to $75,000 as the trade war instigated by U.S. President Donald Trump fuels a sell-off by Bitcoin miners. The cryptocurrency's price has already fallen by 7% in the past 24 hours, trading at $80,267.

The sell-off is occurring amidst a broader market downturn, with the S&P 500 index falling below 6,000 to its lowest level in over a month. This decline is attributed to President Trump's tariffs on China and the European Union, which have heightened the risk of a potential trade war. As a result, traders are abandoning risk assets like Bitcoin and stocks, leading to a decrease in demand for the cryptocurrency.

Bitcoin miners have reacted to this development by ramping up selling activity. According to CryptoQuant data, miners have sent more coins to exchanges this week, adding to the selling pressure that is driving BTC price down. This sell-off coincides with a sharp decline in BTC miner stocks such as Riot Platforms and Hut 8, whose shares have dropped by more than 25% in five days.

Analysts are divided on the extent of the potential drop in Bitcoin's price. Arthur Hayes, the co-founder of BitMEX, predicts one more violent downswing below $80,000 before the price consolidates. Meanwhile, CryptoQuant CEO Ki Young Ju anticipates a swing low to $75,000, before the price consolidates within a wide range between $75,000 – $100,000.

Master Ventures founder Kyle Chasse, however, anticipates that Bitcoin price will likely continue crashing until BTC finds "real organic buyers." According to him, the current crash was because of the unwinding cash and carry trade by arbitrage traders, and hedge funds closing their positions, causing a surge in selling activity.

As these factors – Trump tariffs, lack of liquidity, and surging liquidations – come into play, the market sentiment towards Bitcoin price is likely to remain sour. This may stir an extended downtrend towards the $70,000 to $75,000 price range.