Bitcoin tumbles

Bitcoin Market 

The crypto analyst said $90,000 was a key support level for the leading cryptocurrency and breaking it would trigger a deeper drop in digital assets.

Bitcoin managed to hold above the range until Tuesday, sustained by enthusiasm for a crypto-friendly Trump administration. But as the president's promises failed to match the bullish enthusiasm - and as macroeconomic uncertainty grew - interest in digital assets took a hit.

Growing concerns about tariffs, inflation and higher interest rates have dealt a blow to crypto optimism this year. Growing doubts about the performance of AI stocks have also fueled risk aversion in the market more broadly, causing investors to turn to safer options.

"If tariff concerns continue to mount, bitcoin could continue to fall in the short term. "The main support level to watch would be $71,000," said Nick Pakrin, founder of The Coin Bureau. "But at the same time, if we get some positive macroeconomic news, such as the removal of tariffs in Mexico and Canada, we could see a correction in its price. It's hard to imagine that happening, but Trump could still make a U-turn."

What Kendrick Says;

According to Kendrick, Bitcoin's value is also eroding partly due to the hype happening in the meme coin sector. While the leading token doesn't directly participate in that side of the market, analysts said the series of meme coin scandals is eroding trust in the broader crypto ecosystem.

This trend has been particularly painful for altcoins, with Solana and Ethereum down 41% and 28% this month, respectively.

Bitcoin and altcoins came under further pressure last week when the industry suffered the biggest cryptocurrency theft in history: cryptocurrency exchange Bybit said Friday that it was hacked and that Ethereum worth about $1.5 billion was stolen.

"The Bybit hack is another warning sign for the industry, highlighting the continued vulnerabilities of CEXs and the inherent risks that come with them," Mark Tillment, director of the Pyth Data Association, wrote over the weekend.

"Even more important than the immediate market decline we're seeing now is whether this incident will force regulators to tighten oversight and exchanges to tighten security measures, which will have long-term effects on market structure and trading behavior."

Questions about cryptocurrency regulation and policy will continue to be a major factor driving Bitcoin's rally this year. But for those who were anticipating that government adoption of Bitcoin would drive its price higher, new uncertainty has emerged from three state governments.