Bitcoin Plunges! What's Driving the Wild Moves?

Bitcoin is in freefall, and it's absolutely wild. Have you seen what just happened? Bitcoin dropped more than 10% in just two days! It's crazy how Bitcoin can plunge sharply and then, in a matter of weeks, bounce right back up. This kind of volatility creates massive opportunities for traders, and I want to break it all down for you.

Just as Trump announced a 25% tariff on Mexico, Canada, and China, Bitcoin was trading at 105,000. Then, boom! It tumbled down to 95,000, even touching 94,000—essentially a $10,000 drop in just a few days.

After that, things took a turn. Trump and Mexico seemed to reach a friendlier stance, and the tariffs were postponed for a month. With that news, Bitcoin rebounded back to 105,000. This just goes to show how sharp and unpredictable Bitcoin’s movements can be. For traders, these are golden opportunities to capitalise on.

Now, let’s talk about what’s happening right now. Bitcoin dropped over 10% in just two days but is already showing signs of recovery.

There are a few key reasons behind this latest drop.

1. A Major Hack in the Crypto Space – There was a significant crackdown on an Ethereum wallet, where hackers managed to steal anywhere from millions to possibly a billion dollars. This shook confidence in the crypto space and made investors nervous about security risks.

2. Profit-Taking from Previous Buyers – Many people who bought Bitcoin six to seven months ago are now cashing out, leading to a surge in sell orders. When selling pressure outweighs buying, prices inevitably drop.

3. Broader Market Sentiment and Trump’s Tariff News – Trump’s firm stance on imposing 25% tariffs by March 3rd sent shockwaves through the markets. This kind of uncertainty typically pushes investors toward safe-haven assets like Bitcoin and gold. However, the immediate reaction caused panic selling, driving prices lower before the expected recovery.

Looking ahead, Bitcoin still has strong potential to rally. With inflation concerns and a potential shift in Fed policies, we could see Bitcoin climb back above 100,000 in the coming weeks. The same applies to gold, which could surge past 3,000.

Register here for the next webinar: https://acy.com/en/education/webinars/

Join Luca's Telegram Trading Feed: https://t.me/+bkfmaA76P2VlMTQ1

Free Trading eBook Series: https://acy.com/en/education/ebook/

Open a Live or Demo Account here: https://acy.cloud/open-live-account?u...

Catch up with the latest news and market analysis here: https://acy.com/en/market-news

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.