The crypto industry is again losing its edge as Bitcoin (BTC) price has again shed off its earlier accrued gains. Leaning on its Volatility Index (VI) trend recently, there is growing concern about whether the BTC price will drop below the $70,000 psychological support zone.
Since the start of the month, the market has been unstable, triggering more sell-offs in risk-on assets. With direct correlation with the stock market, Bitcoin price has lost 14.35% of its value Year-to-Date (YTD).
Bitcoin Price and Source of Fluctuation
At the time of writing, the BTC price changed hands for $80,846.20, down by 2.05% in 24 hours. The coin dropped from a high of $84,301.69 to as low as $79,931.85. The Bitcoin price trend has recovered after it touched its 24-hour low.
Bitcoin volatility was showcased as it suddenly dropped from $82,840.94 to $79,931. Notably, the market rout followed false news regarding the Trump family and Binance. The Wall Street Journal (WSJ) reported that the Trump family wanted a minority stake in Binance US.
While the news was almost fueling a boost in the market, the exchange’s founder, Changpeng ‘CZ’ Zhao, denounced the Trump-Binance alliance, further triggering market volatility.
Is BTC Price at Risk of Further Drop?
Throughout this month, Bitcoin has recorded a number of sharp selloffs. Most of these declines were triggered by macroeconomic trends bordering on President Donald Trump’s induced trade war.
Data from Bitbo show the Bitcoin Volatility Index at 2.75, the highest level over the past six months. This high VI implies that the price of BTC may record a very sharp, unannounced drop. However, the mix of positive updates in the ecosystem is likely to boost BTC’s resilience moving forward.
Bitcoin Volatility Index. Source: Bitbo
Despite the $15.59% increase in the past 30 days, the coin’s price has never dropped below the $70,000 support line. If this trend is sustained, BTC may resist further selloffs.
Bitcoin Reserve Sentiment Stays
It is worth noting that the strategic Bitcoin reserve update from earlier in the month has failed to ignite a massive rally in the coin’s price. The initial investor disappointment came when no new funds were allocated to buy the coin for the reserve.
However, Senator Cynthia Lummis’s reintroduction of the Bitcoin Act Bill is poised to change investors’ perceptions soon. If passed by the legislature, it might create a primary basis for betting on the coin in the long term.
With the long-term prospect of Bitcoin, market leaders have reiterated their price target for the coin. ARK Invest CEO Cathie Wood predicted a deflationary boom and maintained her $1.5 million BTC price target by 2030.
The post Bitcoin Price Crash Today: Will BTC Drop Below $70,000? appeared first on CoinGape.
