Bitcoin: Is $50,000 Back in Play? “A Drop Below $60,000 Only a Matter of Time”

▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC), the leading cryptocurrency in the digital asset market, has been warned that it could retreat to the $50,000 level amid macroeconomic uncertainty and deteriorating investor sentiment.

According to NewsBTC on February 18 (local time), Bitcoin is currently trading below the $70,000 mark. Once a strong support level, this price range has now turned into a significant resistance barrier. Analysts predict that a combination of macroeconomic instability and weakening buying pressure could push Bitcoin down to the $50,000 range, a level not seen since September 2024.

Market experts say investor sentiment has noticeably worsened in recent weeks. Noelle Acheson, author of the crypto newsletter “Crypto Is Macro Now,” assessed that sentiment in the digital asset market is clearly gloomy. She pointed out that despite meaningful progress by traditional financial institutions in adopting digital assets, the lack of corresponding price gains has further eroded investor confidence.

Geopolitical tensions and concerns over interest rate policy are also weighing on the market. According to Bloomberg, investors are closely watching escalating geopolitical tensions surrounding Iran and debates over the broader economic impact of artificial intelligence. In addition, expectations for interest rate cuts by the U.S. Federal Reserve have been recalibrated following last week’s inflation data, adding further uncertainty to risk asset markets. Fund flows have also been negative, with U.S.-listed spot Bitcoin ETFs recording $360 million in outflows last week alone, marking a fourth consecutive week of net withdrawals.

Paul Howard, Senior Director at market maker Wincent, said that over the past 12 months, macroeconomic news has been closely linked to the risk profile of digital assets. He expects Bitcoin to remain range-bound until it finds a new catalyst to revive market sentiment. In particular, he suggested that the U.S. Supreme Court’s upcoming ruling on tariffs scheduled for this Friday could have a greater market impact than the Federal Reserve’s minutes or inflation reports.

Robin Singh, CEO of crypto tax platform Koinly, identified the $60,000 level as key support but warned that it could break if risk appetite continues to contract. He noted that the market has not yet experienced the large-scale capitulation typically seen at cycle bottoms in the past. Even a minor macroeconomic shock or renewed wave of uncertainty could sharply drag prices from the mid-$60,000 range down into the $50,000s.

Bitcoin is currently trading around $68,000, down 29% over the past 30 days. Compared with its all-time high of $126,000 recorded last October, it has fallen by approximately 46%. Market participants are watching closely to see whether Bitcoin can defend the critical $60,000 level and lay the groundwork for a rebound, or be swept lower by macroeconomic headwinds.

*Disclaimer: This article is provided for investment reference purposes only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.*