Bitcoin can’t seem to catch a break. Since March 9, it’s been trapped between $78,599 and $84,000, failing to push past key resistance, according to Cointelegraph. It surged after Trump’s election win, but now reality is setting in—Bitcoin is down 24% from its all-time high of $109,000, and traders aren’t rushing in to save it.
One major roadblock? Trump’s trade war tensions. His proposed tariffs on Mexico and Canada have rattled investors. This has made them hesitant to bet on risky assets like Bitcoin. According to Glassnode, short-term holders are bailing fast, with over $100 million in realized losses in just six weeks. That’s a lot of weak hands folding under pressure.
Traders Are Frozen, and That’s a Problem
Bitcoin’s biggest issue isn’t just selling—it’s that no one’s making moves. Perpetual futures funding rates, a key measure of trader sentiment, are flatlining near 0%, meaning buyers and sellers are sitting on their hands. Meanwhile, Bitcoin is stuck below its 200-day simple moving average (SMA) at $83,700, a level traders use to gauge long-term momentum. If it doesn’t break through soon, things could get ugly.
S&P 500 Drops—Will Bitcoin Follow?
Bitcoin’s not the only asset struggling. The S&P 500 just entered correction territory, down 10% from its all-time high. History shows that when stocks tumble, Bitcoin usually follows. During past crashes—like the COVID-19 meltdown—Bitcoin lost up to 60%, according to CoinDesk.
Right now, Bitcoin is 30% off its peak, and traders are asking the big question: Is this just another dip, or is a bigger drop coming?
At the time of writing, Bitcoin is sitting at $82,900.
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