Bitcoin (BTC) Faces Historic Selloff: What’s Next for Crypto in 2025?

• Bitcoin’s historic crash surpasses past dips, including the COVID-19 and FTX crashes, leaving traders uncertain of the next move.
• Tariffs introduced by Trump impact over $1.3 trillion in trade, causing major market sell-offs and weakening Bitcoin’s institutional appeal.
• Bitcoin’s critical support lies at $90,000, with potential further declines to $86,000 or $72,000, though a rebound could be on the horizon.

Bitcoin has just experienced one of the biggest dips in the history of this cryptocurrency, exceeding previous falls including the Covid-19 outbreak, and the failure of the FTX exchange. while the broader cryptocurrency market contemplates over the aftermath and deep dive into Bitcoin’s new levels of support and outlook until 2025.

This latest Bitcoin crash was described as the ‘biggest liquidation ever’ which saw a lot of traders struggling in the market. This has now made it worse than both the crash that occurred due to the COVID-19 pandemic in the year 2021 and the more recent crash that happened in the FTX exchange in the year 2023. There are many who are confused over the causes of this particular dumping of the Bitcoins in the market, and more so, there are a number of them which are as follows; Economic factors.

Bitcoin’s Price Pressure

One of the primary reasons for the recent Bitcoin’s drop in its value was former U.S. President, Donald Trump’s introduction of tariffs. These tariffs are anticipated to impact over $1.3 trillion of the trade between the US and other countries which would destabilize the market as well as resulting to selling spree in the market in such areas of investment as Bitcoin and other altcoins. The increase in the tariffs weakens the attractiveness of Bitcoin for institutional and retail investors with a significant risk for BTC.

In line with this, there is an additional CME gap at around $102,436 that has been formed by Bitcoin. In the past, it has taken such gaps only a few days to be filled, though this might present some hope for a possible rebound. However, the possibility of risk remains high and it becomes important here to understand that even though the market is oversold, BTC still poses threats. Prior crashes including the one that happened in 2023 have been followed by a sharp huge upward movement in the price thus suggesting this as a possible scenario in the near future.

Source: CryptoRover

However, the short term outlook is unknown, and traders look at the major support levels. The price of BTC is currently hovering near a critical support level whereby the $90,000 to $91,000 may be a critical level. If BTC price slips below this level, there is expected to be the second support at $86,000 and further $72,000. Nonetheless, there is an extremely small chance for the price to dip to $72,000 to which traders have to pay attention to.

Source: CryptoRover

Ethereum’s Struggles and Opportunities

Ethereum has also not been spared from the general decline mainly observed in the altcoins’ market. Falling below the important psychological levels, ETH has dropped to its lowest level this year 2024. Ethereum is existing within the strong accumulation territory against the Bitcoin, though the trader sentiment is quite weak. Some traders view current prices as a buying opportunity while accurately predicting the market’s movement will rely on the direction of both BTC and the U.S. stock market in the next few weeks.

Therefore, traders ought to be very careful while trading Bitcoin especially given the fact that a reversal or even further decline may occur at any moment. There is no sign of the crash in the US stock market and therefore its movement will be largely influenced by other economic indicators and the market sentiment in the lead up to 2025.

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