Bitcoin's Volatile Week: Expert Predicts Recovery Amid Trade Tensions

Bitcoin's Volatile Week: Expert Predicts Recovery Amid Trade Tensions

Bitcoin experienced a tumultuous week, dipping below a crucial price point as market panic set in. The cryptocurrency was dragged down by declining stock markets, with leveraged positions being wiped out and over $500 million in liquidations. The immediate trigger was the imposition of new tariffs, a political factor that often rattles markets. However, popular expert Anthony Pompliano believes Bitcoin and stocks will bounce back, reaching new all-time highs before 2025.

The road to recovery is expected to be bumpy. Trade wars have a long tail, with retaliatory moves and policymakers' comments keeping volatility high. China's recent announcement of 34% counter-tariffs against the U.S. has added to the uncertainty. Bitcoin's "safe haven" status is under scrutiny as it continues to move in tandem with the stock market, while gold has also faced selling pressure in recent days.

In the short term, the outlook is challenging. BitMex founder Arthur Hayes predicts Bitcoin could dip to around $76,000-$78,000. However, there is hope that markets, with their short memory, could quickly turn the same factors causing the downturn—tariffs, Fed uncertainty, and geopolitical tension—into tailwinds. Pompliano's optimism lies in the belief that the current chaos will subside, leading to a faster-than-expected rebound.