Bitcoin Price Outlook: Will BTC Drop to $75,000 Amid U.S. Tariff Escalations?
Bitcoin Price Outlook– Bitcoin’s (BTC) options market on Derive.xyz has raised alarms, indicating a 22% chance that Bitcoin prices could dip to $75,000 by March 28. This is a significant increase from last week’s estimated 10% probability. The sharp rise in likelihood comes as concerns grow over the impact of renewed tariff wars between the United States and its major trading partners—Canada, Mexico, and China. These tariff escalations have added to fears that global inflation could spike, complicating central banks’ ability to lower interest rates and potentially dampening investor sentiment in cryptocurrency markets.
The Impact of U.S. Tariffs on Global Inflation
According to Derive, the recently imposed tariffs by President Trump, including a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods, are expected to contribute to rising inflation. “The increased tariffs are likely to lead to heightened inflationary pressures, which could dampen investor sentiment in crypto markets,” Derive stated in an email.
This uncertainty in the global economy has already started to affect Bitcoin’s price, which has dropped 11% in just four days, reaching $93,700 according to CoinDesk data. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also suffered a setback, falling below $2,200 early Monday—its lowest level since August 5, 2024.
Technical Indicators Point to a Possible Drop
Bitcoin’s technical chart shows that it may be on track to form a double-top reversal pattern, a signal that often precedes a significant price decline. If this pattern completes, it could pave the way for Bitcoin to fall to the $75,000 level, as suggested by analysts.
Arthur Hayes, Chief Investment Officer of Maelstrom and former CEO of BitMEX, has also weighed in on Bitcoin’s potential price trajectory. Hayes predicted that Bitcoin would first drop to around $75,000 before entering a more substantial bull run. While this forecast raises concerns, the broader outlook remains constructive.
Positive Market Developments Could Provide Support for BTC
Despite the current concerns, Derive remains optimistic about Bitcoin’s long-term prospects. “We’re seeing a number of active spot ETF filings for assets like DOGE, SOL, XRP, and LTC from major players like Bitwise and Grayscale,” Derive explained. The potential approval of these ETFs by the SEC could serve as a catalyst for greater legitimacy in the digital asset industry, attracting more capital inflows and possibly driving prices higher.
The Fed’s Role in Stabilizing Markets
Bitwise’s Andre Dragosch, Head of Europe, suggested that the Federal Reserve will eventually need to intervene to stabilize the markets. He believes that at some point, the Fed will likely restart quantitative easing (QE) to prevent the dollar from rising further and to halt the tightening of financial conditions that could slow global growth. “The Fed will need to reignite QE to curb the Dollar from rising further and to stop a continued tightening in financial conditions & deceleration in global growth,” Dragosch noted.
In conclusion, while Bitcoin faces the possibility of a decline to $75,000 amid global economic concerns, there are factors in play that could help stabilize the market and provide long-term bullish momentum. The approval of new crypto ETFs and potential Fed intervention could offer much-needed support, giving investors hope for a brighter future in the digital asset space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment