Bitcoin Price Struggles Amid Global Trade Worries: Will BTC Find Support or Fall Further?
With Bitcoin down 30% from its January peak and new tariff wars adding pressure, traders are questioning whether BTC will rebound or test new lows. Is Bitcoin's recovery imminent, or is the worst yet to come? | That's TradingNEWS
Bitcoin's Struggle: Will $80K Be The New Support, Or Will It Plunge Below $50K?
Bitcoin Faces Macro Headwinds Amid U.S. Tariff Wars and Trade Fears – What’s Next for BTC Price?
Bitcoin (BTC) continues to face severe headwinds, with the world’s most popular cryptocurrency plummeting to $80,833—a 2.2% decline—on March 13, 2025. The Trump administration’s ongoing trade war and the 25% tariffs imposed on steel and aluminum have significantly impacted Bitcoin’s price action. Concerns over the U.S. economy and the potential onset of a recession have intensified the pressure on cryptocurrencies like Bitcoin, which are typically seen as speculative assets during times of heightened market uncertainty. In this analysis, we dive deep into whether Bitcoin is nearing its bottom at $80K, or if further downside risks could push it below $50,000. What’s driving the recent drop, and what are the prospects for Bitcoin's future price action?
Bitcoin’s 30% Drop: Is the Bottom Near or Could We See a Black Swan Event?
Bitcoin, having previously reached an all-time high of $109,114 in January 2025, has now dropped 24% from that peak, trading at $80,833 on March 13. The recession fears and escalating trade tariffs imposed by President Trump have led to a market-wide risk-off sentiment, contributing to Bitcoin’s continued struggles. However, there is a growing argument that Bitcoin may be nearing a local bottom within the $68,000 - $74,000 range, based on historical price trends and the Market Value to Realized Value (MVRV) indicator, which suggests that Bitcoin is approaching oversold conditions. Could $80K represent the new support for Bitcoin, or is a Black Swan event—such as a severe global economic crisis—just around the corner that could send BTC crashing to the $50K mark?
Global Trade Wars and Recession Fears Intensify Bitcoin's Downward Pressure
The U.S.-led trade war, triggered by President Trump’s tariffs on steel and aluminum, has shaken global market sentiment. Fears of a recession in the U.S. are rising, with reports indicating that the tariffs could trigger inflationary pressures and disrupt international trade. These developments have prompted investors to flee from risk-heavy assets, such as cryptocurrencies, which are often viewed as highly volatile. This has led to Bitcoin underperforming against U.S. stock markets in 2025, with the cryptocurrency losing 10% year-to-date while the S&P 500 index saw a modest 5% decline. The key question: Can Bitcoin weather this storm, or will it continue to be dragged down by broader economic instability?
Could Bitcoin’s Recent Bounce Be a False Hope?
On March 11, 2025, Bitcoin briefly dipped to $76,600, marking a four-month low, but it has since managed to recover to $80,833. However, this rebound may not signal the end of the bear market. Bitcoin's resistance at $84,000 remains a critical barrier, and until it can break and close above this level, any price increase could be short-lived. **Is Bitcoin's bounce a temporary recovery, or will it quickly fade out, sending prices back towards $74K or lower? The key levels to watch are $84,000 as the immediate resistance and $74,000 as the potential support zone.
What’s Driving the Bitcoin ETF Exodus?
Bitcoin’s institutional support has been waning, particularly with the aggressive outflows from Bitcoin ETFs. As of February 2025, Bitcoin ETFs have experienced massive outflows, with the largest outflow recorded on February 25, 2025, when over $1 billion was pulled from the funds. This signals institutional hesitation amid the broader market uncertainty. Despite this, BlackRock’s iShares Bitcoin Trust (IBIT) remains the dominant Bitcoin ETF, holding nearly 568,000 BTC. Why are institutional investors pulling back from Bitcoin, and what needs to happen for them to return in force?
Bitcoin’s Future in 2025: Will the Bearish Momentum Hold, or Is There a Chance for a Bullish Reversal?
Looking ahead, the critical question is whether Bitcoin can recover its momentum in the second half of 2025. Could Bitcoin see a revival similar to previous bull cycles after sharp corrections, or will the current economic environment—featuring global trade uncertainty, inflationary pressures, and recession fears—prevent any significant price recovery? According to historical data, Bitcoin has often experienced rebounds after sharp corrections, particularly after breaking past its previous all-time highs. Could the market be primed for a bull run once the macroeconomic landscape stabilizes?
What Are Bitcoin’s Key Price Levels to Watch?
Bitcoin’s immediate support sits around $74,000, and if it falls below this level, there could be a potential decline towards the $50,000 mark. However, the $85,000 resistance must be cleared for a sustained upward trend to materialize. Can Bitcoin break through this resistance in the coming weeks, or will it remain stuck in its current downtrend? With Bitcoin's recent volatility, these key levels will likely determine its short- and long-term trajectory. What should investors look for to determine whether Bitcoin is finally turning the corner or heading for more corrections?
Can Bitcoin Retain Its Status as Digital Gold Amid Global Uncertainty?
Bitcoin has often been referred to as "digital gold," a store of value in times of economic turmoil. However, recent performance suggests that Bitcoin is increasingly behaving more like a high beta asset, similar to tech stocks, rather than a safe haven. The question is: Can Bitcoin still be considered a store of value during market volatility, or has it lost its allure as an inflation hedge? This shift in sentiment is particularly important for Bitcoin’s long-term prospects, especially as its price volatility increasingly mirrors that of risk-on assets like technology stocks.
Conclusion: Is Bitcoin Still a Viable Investment or a Risky Speculative Play?
Bitcoin's future trajectory is still highly uncertain. While some analysts predict a bullish reversal in 2025, driven by institutional adoption and market recovery, others caution that external shocks—such as a deeper global recession or a further escalation in the trade war—could push Bitcoin into deeper corrections. Is Bitcoin a long-term buy at these levels, or is it better to wait for further price declines before entering? Traders and investors must carefully monitor Bitcoin’s support and resistance levels, as well as broader economic trends, to make informed decisions.
