With escalating trade tensions and the ongoing uncertainty surrounding global markets, some experts are predicting that Bitcoin could see a significant drop in 2025, potentially falling below the $75,000 mark. The latest U.S. tariffs, imposed by the Trump administration, have sparked fears of a broader risk-off selloff, which may have serious implications for Bitcoin’s price.
Impact of Trump’s Tariff Threats on Bitcoin
Rachel Lin, CEO of SynFutures, explained to TheStreet Crypto that Bitcoin could experience a major price correction if Trump’s tariff threats worsen, exacerbating the current market volatility. “Bitcoin could slip below $75,000 in 2025 if Trump’s tariff threats spark a broader risk-off selloff,” Lin stated. With markets already in a fragile state, concerns over trade tensions are amplifying the uncertainty.
Lin further noted that short-term holders who bought Bitcoin at its all-time high have been selling off in recent months as macroeconomic conditions have become less predictable. She pointed out a similar pattern last August, when Bitcoin fell from $68,000 to $49,000 due to recession fears and a broader economic slowdown.
“If trade tensions worsen, we’ll likely see a slowdown in capital flow, causing Bitcoin to further decline until macro concerns ease,” Lin warned, emphasizing the importance of geopolitical factors on Bitcoin’s price trajectory.
Experts Suggest a Short-Term Dip, Not a Prolonged Bear Market
Despite concerns over a potential drop in Bitcoin’s price, some experts believe that even if Bitcoin does fall below $75,000, it won’t lead to a prolonged bear market. Sid Powell, CEO of Maple, argued that “If Bitcoin drops below $75,000, it’s unlikely to be a sustained bear market unless macro conditions turn highly negative.” Powell highlighted that Bitcoin’s long-term potential is not dictated by tariffs or political cycles, suggesting that its price may rebound once the macroeconomic environment stabilizes.
Joe Kelly, CEO at Unchained, echoed this sentiment, explaining that while trade tensions could cause short-term volatility, Bitcoin’s long-term value proposition remains strong. “While trade tensions may impact broader liquidity and cause short-term volatility, the bigger story is that more individuals and institutions are turning to Bitcoin as a reliable store of value,” Kelly said. “If Bitcoin dips below $75,000, those who understand its long-term potential will take the opportunity to strengthen their position.”
Ether Faces Its Own Challenges
While Bitcoin faces potential pressure from global trade tensions, other cryptocurrencies, particularly Ether, are also facing challenges. Greg Magadini, Director of Derivatives at Amberdata, expressed concerns that Ether could fall below $1,600 this year. He stated, “I fully expect Ether to drop below $1,600, if not below $1,000 this year,” pointing to the broader market repricing of risk assets as a major factor in Ethereum’s decline.
The Ethereum network’s reliance on a small number of key validators and centralized pools is raising security concerns. At the same time, Ethereum’s decentralized nature limits its scalability, which could undermine confidence in the network and drive down its price. “It’s inevitable that Ethereum drops below $1,600 simply because it is stuck in a paradox of being too centralized to be safe, yet too decentralized to be scalable,” said Adam O’Brien, CEO of Bitcoin Well.
Solana’s Rising Competition
In addition to Ethereum’s internal challenges, some analysts point to increasing competition from other blockchain platforms like Solana, particularly in the memecoin sector. Todd Ruoff, CEO of Autonomys, noted that Solana’s growth in the memecoin space is taking users away from Ethereum, highlighting its scalability issues. “External competition from Solana in the memecoin frenzy highlighted a mass migration in user adoption, as well as the scalability issues Ethereum continues facing,” Ruoff said.
The emergence of Solana as a serious competitor could further impact Ethereum’s market dominance and its future price trajectory. Moreover, Solana’s pending ETF application and its ability to attract institutional interest could deepen Ethereum’s struggles in the coming months.
Conclusion
As global trade tensions intensify and markets remain volatile, Bitcoin’s price may face downward pressure, potentially falling below $75,000 in 2025. While some experts remain optimistic about Bitcoin’s long-term potential, the current market uncertainty raises questions about how tariffs and trade disputes will impact its price. Meanwhile, Ethereum faces its own set of challenges, from internal scalability concerns to increasing competition from platforms like Solana. As always, market participants will need to navigate these turbulent waters with caution and a long-term perspective.
Related topics:
