The cryptocurrency market witnessed another decline in Bitcoin prices on Tuesday, dropping to $96,870.6, reflecting continued selling pressure. These losses come amid escalating geopolitical tensions in the Middle East and uncertainty regarding future U.S. monetary policy, impacting investor sentiment and making them more cautious about high-risk assets.
Other cryptocurrencies also experienced widespread declines as profit-taking continued. Ethereum, the second-largest cryptocurrency, fell by 6.1% to $3,702.02. XRP dropped by 13% to $2.1672, while cryptocurrencies like Solana, Cardano, and Polygon saw declines ranging from 7% to 16%. DOGE also decreased by 10%.
Discussions have resurfaced about Bitcoin’s long-term price trajectory due to its recent performance. Compared to previous market cycles, the current cycle suggests Bitcoin still has significant growth potential, possibly reaching $200,000.
According to recovery patterns observed in previous bull markets, Bitcoin’s price has risen by more than 300% since its 2024 low of around $25,000. During these cycles, Bitcoin’s return on investment (ROI) has shown accelerated growth, often setting new record highs. Even at its current price of approximately $100,000, there is still room for further growth.
However, the path to $200,000 will not be without challenges. The $100,000 level already represents a psychological resistance that has prompted many early investors to take profits. Trading volumes during recent declines confirm this pattern, indicating that short-term traders are capitalizing on Bitcoin rallies. It is also crucial to monitor key support levels at $93,000 and $84,000 to ensure sustained buyer interest.
