Analysts reveal what triggered current Bitcoin market state

The flagship cryptocurrency’s price has dropped by approximately 8% over the past 7 days. According to Coinmarketcap data, Bitcoin briefly dipped below $80,000 but bounced back.

QCP Capital believes BTC volatility could be triggered by Donald Trump’s interview with Fox News, in which he ‘appeared indifferent to recession risks.’ The U.S. president suggested an economic downturn could be required to ‘fix’ the situation in the country.

QCP Capital pointed to the decrease in U.S. Treasury yields and the weakening of the dollar, which can have a positive impact on digital assets in the long run. CryptoQuant experts highlighted a plunge in open interest in Bitcoin and Ethereum futures, which could indicate leverage washout and potential market stabilization.

Earlier, Santiment reported panic among Bitcoin market players. They also spoke about the chief cryptocurrency’s price forecasts predicting a sub-$70,000 dive.

“The true capitulation point (and optimal buy spot) will be when low prices ($50,000 — $69,000) are being predicted across social media with very little mention of high prices ($100,000 — $119,000),” Santiment explained.