Bitcoin is dropping, with BTC now below $85000, a decrease of 20% from its peak. Look into price predictions to understand why.

Bitcoin, the world’s largest cryptocurrency, has seen a significant downturn recently as it dropped below $85,000, marking a decrease of over 20% from its peak of $109,350 in January. This current decline is the most substantial sell-off experienced in 2025. The market has been under considerable pressure due to ETF outflows and the announcement of US President Donald Trump’s plans to impose tariffs on the European Union. Experts are predicting that Bitcoin may further drop to $74,000 in the near future.

The live price of Bitcoin at the time of writing is $84,916.18 per (BTC/USD), with a market cap of $1,683.86B and a 24-hour trading volume of $67.37 billion. Bitcoin has decreased by 4.61% in the last 24 hours, with a circulating supply of 19.83 million. Avinash Shekhar, the co-founder and CEO of Pi42, noted that the crypto market is currently in a bear phase, with Bitcoin’s significant decline indicating investor anxiety and rising volatility. Trump’s threats regarding EU tariffs have further exacerbated the sell-off in Bitcoin.

CoinSwitch Market Desk reported that BTC has fallen by an additional 4% within a day, marking the first time since August 2024 that the asset has experienced a more than 3% decrease consecutively for three days. The recent sell-off has been primarily attributed to Trump’s announcement of imposing tariffs on the EU, which has negatively impacted investor sentiments. This announcement has led to massive sell-offs not only in Bitcoin but also in other cryptocurrencies like Ethereum and XRP.

Despite these challenges, experts believe that Bitcoin’s long-term fundamentals remain solid, with on-chain statistics indicating that long-term holders are still accumulating the asset. However, the coming weeks will test whether Bitcoin and the broader crypto market can weather these short-term pressures or if further declines are looming. Avinash Shekhar suggested that institutional selling and macroeconomic instability have shaken market confidence, raising concerns about whether the crypto market is experiencing a temporary correction or a more substantial downturn.

In conclusion, while Bitcoin’s recent drop below $85,000 has been driven by short-term market pressures, analysts remain optimistic about the asset’s long-term prospects. As regulatory clarity improves and the Bitcoin halving approaches, market sentiment is expected to stabilize. Market corrections are viewed as a natural part of crypto’s growth trajectory, often presenting strategic accumulation opportunities for investors. Despite the current challenges facing Bitcoin, its status as a global asset class is becoming increasingly apparent, highlighting the resilience of the cryptocurrency market in the face of volatility.