Bitcoin’s recent surge to $70,000 has abruptly reversed, with the cryptocurrency plummeting below the $60,000 mark. The sharp decline follows a broader market downturn triggered by concerns over the US economy.
AI chatbot Perplexity is warning of further potential drops for Bitcoin, predicting a potential range of $40,000 to $50,000. This forecast aligns with historical patterns of significant pullbacks during bull markets.
Several factors are contributing to Bitcoin’s decline. Outflows from Bitcoin-related investment vehicles, particularly ETFs, have accelerated, with over $230 million exiting on Friday alone. Additionally, the absence of sustained bullish momentum after Bitcoin failed to hold above crucial support levels of $62,000 has exacerbated selling pressure.
Market analysts remain cautious, citing upcoming economic indicators that could influence Federal Reserve policies as a source of uncertainty.