In the ever-volatile crypto market, traders are currently adopting a cautious stance, with some predicting a further decline in Bitcoin’s (BTC) price to as low as $70,000 to $75,000. This comes in response to President Trump's recent imposition of sweeping global tariffs, which took effect on Wednesday.

Bitcoin experienced a significant dip early on Wednesday, dropping to approximately $75,000 before making a slight recovery. In tandem with Bitcoin's struggles, Ether (ETH) plummeted by 10%, leading a wave of losses among major cryptocurrencies. Other prominent tokens, including XRP (XRP), Dogecoin (DOGE), BNB Chain’s BNB, Solana’s SOL, and Cardano’s ADA, all saw declines exceeding 5%. This downturn contributed to an overall market capitalization decrease of 6%, extending a seven-day slide that has now totaled nearly 15%.

Smaller tokens have fared even worse, with the trendy upstart Berachain’s BERA suffering a staggering 20% drop. Meanwhile, popular memecoins such as Bonk (BONK), Pepe (PEPE), and Floki (FLOKI) were down more than 9%, reflecting the broader pessimism in the market.

The retreat of traders from major cryptocurrencies has effectively reversed the gains seen during Tuesday’s brief relief rally. This downturn coincides with Trump’s aggressive push to overhaul global trade agreements, significantly hiking tariffs on Chinese goods to 104% and imposing new import taxes on over 60 trading partners.

In a related development, U.S. Treasury bonds have also seen a significant selloff, with the yield on 30-year bonds surging by more than 20 basis points, reaching 4.98%. This shift is alarming for investors as it deviates from the traditional safe-haven status typically associated with bonds. Such movements can indicate deeper market concerns and stir anxiety among traders.

Market analysts have speculated that this latest selloff may be the result of a forced liquidation from a major player in the market. Jim Bianco, founder of Bianco Research, noted in a recent post on social media that since the market closed on Friday, the 30-year yield has risen by 56 basis points in just three trading days. He highlighted that such a rapid increase has not been witnessed since January 7, 1982, when yields were around 14%.

Bianco remarked, “This kind of historic move is caused by a forced liquidation, not human managers making decisions about the outlook for rates at midnight Eastern Time.” This rapid increase in bond yields suggests falling bond prices and could lead to higher borrowing costs for the U.S. government, potentially exacerbating the existing federal deficit that is already burdened by significant debt levels.

Investors are increasingly concerned that a prolonged trade war could weaken global trade, disrupt established supply chains, and impede U.S. economic growth. This scenario could place additional pressure on U.S. equity markets and Bitcoin, which often mirrors the fluctuations of the larger U.S. market.

The ongoing selloff appears to indicate that the market is now pricing in inflation, although a sustained period of uncertainty could alter this dynamic. Traders are bracing for a potential drop in Bitcoin prices, with some forecasting that it may hit levels as low as $70,000 in the near future due to escalating tariff pressures.

Bears Take Charge

Despite the bearish outlook, Ryan Lee, Chief Analyst at Bitget Research, shared a more optimistic perspective. He stated in a Telegram message that while the short-term outlook for investors suggests caution, the current dip in Bitcoin’s price could present a buying opportunity for long-term investors. Lee emphasized, “Dollar-cost averaging into Bitcoin is a prudent move now, with an eye on altcoins like Solana for higher-risk upside later.”

Moreover, Lee expressed hope for a potential recovery, suggesting that if macroeconomic conditions stabilize or pro-crypto policies are implemented, Bitcoin could soar to between $95,000 and $100,000 by late 2025. This would push the overall market capitalization beyond $3 trillion once again. He noted that despite the pressures from tariffs and a risk-averse sentiment affecting altcoins, Bitcoin’s resilience and increasing market dominance, which is nearing 60%, reflect the underlying fundamentals of the ecosystem. Institutional adoption and long-term factors such as the halving cycle continue to support this outlook.