Bitcoin’s price might drop to a new 5-month low near $71K if the tariff war and stock market volatility continue.

Bitcoin Price Under Pressure: $71K Support in Focus Amid Global Tensions

Tariff Conflict and Equity Market Declines Unsettle Investors

As global financial tensions escalate, Bitcoin (BTC) faces mounting pressure. Consequently, analysts warn that the Bitcoin price could dip to a five-month low near $71,000. The intensifying U.S.-China tariff war, combined with sharp stock market sell-offs, is hurting investor sentiment and raising fears of a broader correction.

Market Instability and Economic Weakness Emerge

Equity markets are struggling. Moreover, the S&P 500 and Nasdaq have pulled back from record highs. Concerns over inflation, interest rates, and trade disputes have resurfaced. Additionally, with potential tariffs on key goods, the global economy faces growing uncertainty, impacting all asset classes, including crypto.

Bitcoin’s Link to High-Risk Investments

Though often dubbed “digital gold,” Bitcoin hasn’t escaped this volatility. In fact, it remains highly correlated with risk-on assets like tech stocks. As investors shy away from risk, BTC’s momentum has faded. Therefore, the recent failure to stay above $73K has now put $71K in sharp focus.

Technical and Fundamental Vulnerabilities

Analysts caution that geopolitical tension, central bank tightening, and worsening trade relations could drain liquidity from the market. Furthermore, Bitcoin, as a high-volatility asset, is particularly vulnerable. Technical charts reveal bearish signs:

• Bearish divergences
• Lower trading volumes
• Increased whale sell-offs
  These signals, in turn, point to a possible short-term correction.

Stagnation Inflation: A Major Economic Hazard

Macroeconomic experts are also raising alarms over stagflation—rising inflation and slowing growth. Recently, Ray Dalio noted that tariffs are “stagflationary,” harming both producers and consumers. In this climate, investors are seeking safe-haven assets. However, Bitcoin may still fit that role, but only if it defends critical support levels.

Potential Bargain Entry Point?

Despite the bearish sentiment, some in the crypto community remain optimistic. Accordingly, they see this as a chance to buy the dip. As traditional markets struggle, decentralized assets like Bitcoin could offer protection against fiat devaluation and systemic risk.

$71K: A Pivotal Threshold to Monitor

In the near term, Bitcoin bulls must hold the $71,000 level. Should this support break, further losses could follow—possibly retesting support near $68K. Ultimately, how BTC reacts here will set the tone for the next phase of the market.