Bitcoin Price Sharp Decline Expectation: The Danger of 100 Thousand Dollars

Bitcoin has recently experienced fluctuations, dropping to a level of $108,000, causing concern among investors. Analysts suggest that while macroeconomic pressures may persist, potential interest rate cuts or new ETF approvals could drive prices back up.

The trade war between the U.S. and China, along with new issues in regional banks, has impacted the recent decline in Bitcoin's price. The price of Bitcoin has dropped to $108,757, feeding an atmosphere of "extreme fear" in the cryptocurrency market. However, according to analysts, this situation presents both risks and opportunities.

Min Jung, an analyst at Presto Research, stated, "The recent wave of selling deepened due to Trump’s remarks towards China and the fake loan incidents on the balance sheets of U.S. banks." Jung added, “Cryptocurrency prices are currently entirely influenced by U.S.-China relations and macro data. This flow of news creates both downside risks and upside opportunities.”

Vincent Liu, investment director at Kronos Research, noted that Bitcoin and Ethereum have shown a stronger stance compared to stocks, but also emphasized that weak liquidity and high leverage levels increase the risk of sharp declines in the current market uncertainties. Liu said, “There is cautious buying at a dip in the market, but this does not mean complete confidence.”

Nick Ruck, director of LVRG Research, indicated that in the worst-case scenario, the price of Bitcoin could drop below $100,000. However, Ruck stated that the situation is not entirely negative; “The Federal Reserve’s decision to cut interest rates or new spot ETF approvals could lead to a strong recovery in prices in the fourth quarter of the year,” he commented.

The consensus among analysts is that the cryptocurrency market remains highly sensitive to macro developments and that investors will continue to position themselves based on news flow in the short term. Therefore, it is crucial for investors to closely monitor these developments.