Bitcoin has officially entered bear territory, dropping 25% from its all-time high as macroeconomic and political uncertainty weigh on the market. Speaking on Bloomberg TV, crypto reporter Emily Nicolle emphasized that Bitcoin remains a highly risk-on asset, closely correlated with shifts in the global financial landscape.
Bitcoin’s Decline and Macroeconomic Uncertainty
The cryptocurrency’s downturn aligns with broader Wall Street movements, reinforcing Bitcoin’s dependence on macroeconomic factors. Nicolle explained that fluctuations in traditional markets often reflect in Bitcoin’s price movements, making it a risk-sensitive asset.
Additionally, setbacks within the crypto industry have contributed to the negative sentiment. Last week’s $1.5 billion hack of Bybit has exacerbated volatility, creating a “rough period” for the sector.
Political Uncertainty Adds to the Pressure
Nicolle also pointed out that political developments—or the lack thereof—are impacting Bitcoin’s trajectory. Many investors had anticipated clearer regulatory guidance from the Trump administration, but so far, expectations remain unmet.
“Some of the things Trump promised to do on the campaign trail have not yet come to fruition, and those are the catalysts we are looking to as potential upsides for Bitcoin.” – Emily Nicolle
Key Support Levels for Bitcoin
With Bitcoin struggling, traders are watching the $70,000 level as a crucial psychological and technical support zone. Nicolle warned that if the price falls below this threshold, options market concentrations could trigger additional selling pressure, amplifying losses.
Altcoins Face Even Greater Selling Pressure
As Bitcoin declines, altcoins are also struggling. Nicolle noted that Ethereum and Solana have been hit particularly hard:
- Solana (SOL) suffered due to a meme coin scandal tied to Argentina’s president.
- Ethereum (ETH) is under pressure due to its association with the Bybit hack.
“Without any potential upside, Bitcoin is the tide that lifts all boats. If Bitcoin struggles, other cryptocurrencies tend to be hit even harder.” – Emily Nicolle
What’s Next for Bitcoin?
Bitcoin’s future trajectory depends on macroeconomic conditions and regulatory developments. Nicolle suggested that if the Trump administration implements stablecoin legislation or other pro-crypto policies, it could bolster Bitcoin’s recovery. However, if traditional markets improve while crypto regulations remain stagnant, Bitcoin may continue to struggle in the near term.
