Bitcoin Price Faces Uncertainty Amid Global Economic Concerns

Bitcoin (BTC) price closed March in an indecisive manner, as short-term holders conflicted with long-term investors. The upcoming reciprocal tariffs from the United States this week have caused mixed reactions from global investors amid concerns of possible U.S. recession.

As the second quarter of 2025 begins, much of crypto investors’ attention has shifted to an anticipated correlation between Bitcoin and Gold (XAU). Furthermore, Gold price recorded palpable gains since December whilst BTC price and the wider altcoin market were trapped in bearish sentiment.

According to Quinn Thompson, founder of crypto hedge fund Lekker Capital, Bitcoin price is signaling a potential correction below $60k. Thompson predicts that Bitcoin price will be trapped in a bearish environment akin to the 2022 market outlook. “I could see us going back to a five handle by the end of the year,” Thompson noted.

According to Thompson, the recent announcement from the White House on the creation of a strategic BTC reserve and regulatory framework from Congress is a sell-the-news event. “I don’t think it happens quickly, which is why it would be very painful and shocking to people because nothing about the current market conditions is very volatile, with big liquidations and crashes. It’s this sort of different market environment, a slow grind down that is almost more unbearable for people because they’re like, ‘Is it over? Is the bottom in?” Thompson added.

Considering the diminishing returns for Bitcoin over the years, technical analysis suggests a potential parabolic rally before the end of this year. Moreover, Bitcoin’s monthly Relative Strength Index (RSI) has not reached a peak of 90 in the past year as observed during the previous three major bull markets.

Additionally, long-term investors, led by Strategy (formerly MicroStrategy), have continued to accumulate more Bitcoins to hedge against inflation and market uncertainty.

Bitcoin's price trajectory faces significant uncertainty as it approaches the end of 2025. The cryptocurrency has experienced a volatile period, with global economic concerns and mixed market sentiment casting a shadow over its outlook for the second quarter of 2025. Analysts are divided on whether the rally will continue or if the price will drop below $60,000.

The rally to $64.4K in October 2024 was seen as a bullish chart pattern, but subsequent price movements have been less clear. Some analysts predict that Bitcoin could reach $70,000 in the coming weeks, while others warn of a potential correction. The price has fluctuated significantly, hitting highs of $73.6K and $76.8K, but these gains have not been sustained. The price has also been influenced by broader market trends, with some analysts suggesting that a daily close above $76,000 could confirm a true breakout.

The uncertainty surrounding Bitcoin's price is compounded by the broader economic environment. Global economic concerns, including inflation and geopolitical tensions, have weighed on market sentiment. Additionally, the political landscape, with upcoming elections and policy changes, has added to the volatility. Some analysts suggest that Bitcoin could approach six-figure prices by 2025 if it surpasses key resistance levels, but others are more cautious, predicting a potential correction below $60,000.

The price of Bitcoin has also been influenced by institutional demand and market speculation. Some analysts suggest that Bitcoin could approach $70,000 amid growing risk-on sentiment and institutional demand. However, others warn of a potential pullback, with some suggesting that the price could drop below $60,000 if key support levels are breached.

The future of Bitcoin's price remains uncertain, with analysts divided on whether the rally will continue or if a correction is imminent. The price has been influenced by a range of factors, including global economic concerns, market sentiment, and institutional demand. As the end of 2025 approaches, investors will be watching closely to see whether Bitcoin can maintain its momentum or if a correction is on the horizon.