- The crypto market has drastically fallen with Bitcoin crashing below $80K since November.
- Bitcoin’s dip is highly speculated to result from trade wars and de-dollarization concerns.
- Despite the fall, Strategy and Metaplanet have accumulated Bitcoin in their holdings.
The crypto landscape is in a frenzy as Bitcoin crashes below $80K. Investors frantically await an improvement from the king of crypto, however, the coin is still dipping. Earlier, a similar incident had occurred in November wherein Bitcoin fell below $70K, but it slowly surged to reach $90K following which it hit $100K in December and $109K in January following Trump’s Presidential inauguration.
Bitcoin had its share of ups and downs, however, the market is experiencing a volatile nature due to its price fluctuation. With the token reaching a new ATH of $109K in January, many analysts have predicted further increase while some declared a potential downfall. MMCrypto, a market observer, stated that in the first half of 2025, the market will experience a worldwide crash. In his December X post, the analyst stated that the crash would be worse than in 2008 and hinted at a possible civil war.
Speculations are rife that the dip is linked to the trade wars that created an uproar between the U.S. and prominent nations including China, Mexico, and Canada. Earlier this month, President Donald Trump imposed a 25% tariff on imports from Mexico and Canada while China received 10%. Following severe retaliation, the tariffs on Mexico and Canada were paused whereas China was not spared.
Following this, China imposed $14B in tariffs on U.S. goods, escalating trade tensions with the U.S. Apart from this, Trump’s warning to BRICS nations on de-dollarization has also affected Bitcoin’s price. In a post on Truth Social, the U.S. president stated that the nations must not commit to or create an alternative currency to the USD, failing which they would be slammed with 100% tariffs on their imports to the U.S.
On the other hand, institutional interest has not wavered despite the dip. Firms like Strategy and Metaplanet have continued their Bitcoin accumulation. On Tuesday, Metaplanet, Japan’s MicroStrategy, bought 135 BTC for $13 million at an average price of $96,185 each, while Strategy (formerly MicroStrategy) acquired 20,356 BTC for $1.99 billion at an average price of $97,514 per Bitcoin. Also, El Salvador, the first country to use Bitcoin as a legal currency bought 7 BTC, priced at $94,050 each.
However, an analyst pointed out that the dip not only affected the traders in the market but also Michael Saylor. In his X post, he stated that the CEO of Strategy lost BTC holdings worth $8 billion. Nevertheless, Saylor insisted on Bitcoin’s potential and his latest post emphasizes his hold on the asset.
Related: Michael Saylor to Present Bitcoin Debt Strategy in Washington
Despite the extreme conditions, Robert Kiyosaki, the author of Rich Dad, Poor Dad, emphasized that traders should buy the dip as it is the right time. Kiyosaki stated that the problem is not with Bitcoin but with the monetary system and bankers. However, considering technical factors and market sentiment, traders are still elusive over their decision to buy Bitcoin during this period.
