Bitcoin Falls Below $84K Amid Geopolitical Tensions and Market Uncertainty
Bitcoin and other major cryptocurrencies saw a sharp decline on Friday as escalating geopolitical tensions and concerns over potential economic disruptions weighed on investor sentiment. The leading cryptocurrency fell below the $84,000 mark, reflecting the growing cautiousness in the market.
As of 1:10 pm IST, Bitcoin was trading at $83,819, down 2.3% in the last 24 hours. Ethereum also slipped nearly 2% to $1,968, while the overall global cryptocurrency market cap dropped by 2% to $2.75 trillion, according to market data.
Geopolitical Concerns and Economic Fears
The downturn in the crypto market coincides with mounting geopolitical risks. Reports of Israeli airstrikes on Gaza and a Ukrainian drone attack on a Russian military airfield have heightened fears of escalating conflicts. Additionally, the anticipation of new tariffs from the US, set to be imposed by former President Donald Trump on April 2, has further dampened market confidence.
“Geopolitical uncertainties are driving investors away from riskier assets like cryptocurrencies,” said market analyst Rohan Mehta. “Safe-haven assets such as gold and the US dollar are seeing stronger inflows, leaving digital assets under pressure.”
Trump’s Stance on Crypto
Despite the pullback, the crypto community took note of Trump’s recent remarks at the Blockworks Digital Assets Summit in New York. He reiterated his support for the crypto industry, emphasizing his commitment to reducing regulatory barriers and encouraging innovation in digital asset markets.
However, industry experts believe that the lack of immediate policy clarity has prevented a stronger market response. “While Trump’s pro-crypto stance is encouraging, investors remain cautious as no specific regulatory framework has been proposed,” noted Edul Patel, CEO of Mudrex.
Altcoins Face Pressure
Alongside Bitcoin’s decline, major altcoins also experienced losses. XRP fell by 3%, Solana tumbled 4.6%, and Cardano lost 2.5%. Dogecoin also dropped by 3.5%, reflecting the broader bearish sentiment in the market. Chainlink, Avalanche, and Hedera were down between 2% and 4%.
The 24-hour trading volume of Bitcoin surged by 32% to $25.5 billion, with stablecoins accounting for a significant portion of the trading activity. Stablecoin volumes represented 98.43% of the total crypto trading volume, reaching $74 billion.
Outlook for Bitcoin
Despite the recent dip, market participants suggest that Bitcoin’s strong support level around $80,000 remains intact. “Bulls have managed to defend the $80,000 mark for several days, indicating resilience in the market,” said Patel. “However, a clear breakout will require stronger bullish momentum and positive market developments.”
As geopolitical tensions and economic uncertainties persist, investors are likely to remain cautious in the near term. Analysts recommend monitoring global developments and regulatory updates for further market insights.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are subject to market risks, and readers should conduct their own research before making any investment decisions.
