The Bitcoin price has experienced a notable decline of 6% from its all-time highs, leading to significant liquidation events that approached $200 million on Friday, while sparking renewed speculation about the cryptocurrency’s future trajectory.
The Bull Theory analysts attribute Current economic conditions can be traced to geopolitical changes, in particular President Donald Trump’s recent announcements about substantial tariffs, export restrictions and controls against Chinese products, which will affect key industrial and strategic material.
Bitcoin and Tariff Risks
According to analysts, the implications of tariffs are complex. These include risks such as disruption of supply chains, inflation acceleration, and a slowdown in global trade.
Several factors are contributing to Bitcoin’s sell-off at this time. There is an important difference between Bitcoin and other cryptocurrencies. risk rotation Investors seek refuge in safe assets, such as gold and cash.
The looming risks of tariffs could also lead to an increase in inflation and delay the anticipated reduction in rates. The unwinding short positions has a negative impact on alternative cryptocurrency and leveraged Bitcoin, which is exacerbating a downward trend.
The uncertainty around trade policies Has created an “uncertainty premium,”Markets will demand discounts until the picture becomes clearer.
Analysts draw parallels with past market behaviour, recalling that tariff threats in 2025 caused a major crash in Bitcoin and other cryptocurrency prices. These recent moves appear to serve as liquidity probes, testing the market’s resilience and flushing out weaker hands before a potential recovery phase.
BTC Analysts predict positive outlook
According to The Bull Theory, market participants are advised to be alert for BTC’s closest key support zones, especially around $116,000, which is where buyers historically return.
Also, policymakers are said to be key in determining the outcome of the situation. Federal Reserve If the (Fed), signals its willingness to relax monetary policy, then a rapid rebound may follow. In the opposite case, market confidence could be restored if Trump’s remarks on tariffs are tempered or become more precise.
Analysts expect continued volatility in the short-term, with possible retests at support levels. In the mid-term, investors who are savvy may start to buy Bitcoin as narratives weaken.
Bitcoin’s prospects are positive in the long-term. With the anticipation of rate reductions and the historically good performance of markets, especially during the last quarter. Bitcoin tends to trend upwards when liquidity increases and the momentum of the markets builds.
BTC to reach $130,000 in the next month?
Market expert Timothy Peterson has also weighed in, noting that half of Bitcoin’s gains for October may have already been realized, according to artificial intelligence (AI) simulations.
Analysis presented In the early part of this week, there was a 50% probability that Bitcoin would finish the month at or above $140.000 and a 43.3% chance it would be below $136,000
The updated AI prediction suggests that the expected value at month’s end will be around $130,000. This represents an increase of 11% from the current Bitcoin price of $117.300.
Despite this, there is now an 18% chance that ‘Uptober’ could conclude negatively, adding another layer of uncertainty to the market’s outlook.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com
