Will Bitcoin's Price Drop Further Before Rebounding?

The price of Bitcoin has fallen below $63,000, extending overnight weakness amid renewed concerns over President Trump's tariffs and AI jitters that have soured investor sentiment. This downturn has led to speculation about whether the cryptocurrency's value will continue to drop before rebounding.

Historical patterns suggest that Bitcoin may not find a lasting bottom until its 50-week moving average crosses below the 100-week average, implying further downside toward $50,000 or lower is possible. Analysts are closely watching the key $60,000 support level, with a break potentially opening the way to the mid-to-low $50,000 range.

Despite the decline, some investors remain optimistic about Bitcoin's future. Mexican billionaire Ricardo Salinas, who has 70% of his liquid assets in Bitcoin, urged his followers to "buy now while it's down" and views the cryptocurrency as a means of protecting against inflation and control. Salinas has been a long-time advocate for Bitcoin and has previously stated that he views fiat currency as fraudulent.

Meanwhile, investment firm Strategy has completed its 100th Bitcoin purchase since 2020, acquiring 592 BTC for $39.8 million at an average price of $67,286 per coin. This purchase brings Strategy's total Bitcoin holdings to 717,722, acquired for an aggregate $54.56 billion at an average price of $76,020 per bitcoin.

In other news, Pantera has led an $11.5 million round in Based, a Hyperliquid-powered crypto app that combines perpetuals trading, prediction markets, and real-world crypto spending into a single interface. The company plans to use the fresh capital to expand into new markets and build out its onchain financial infrastructure.

Base, a Web3 consumer app, has also been making waves in the cryptocurrency space. The app has risen to the top of Ethereum's layer-2 ladder, thanks in part to its use of SocialFi, memecoins, and AI agents.

As the cryptocurrency market continues to evolve, investors and analysts will be keeping a close eye on Bitcoin's price movements and the overall market trends. While some are predicting further declines, others remain bullish about the future of Bitcoin and the cryptocurrency market as a whole.

Sources:
- Bitcoin dips under $63,000 and history says more pain ahead before bottom forms (Omkar Godbole, Edited by Sam Reynolds)
- Pantera leads $11.5M round in Based, a Hyperliquid-powered crypto app (Margaux Nijkerk, Edited by Stephen Alpher)
- Mexican billionaire Ricardo Salinas remains bullish on bitcoin after plunge (Francisco Rodrigues, Edited by Stephen Alpher)
- How SocialFi, memecoins and AI pushed Base to the top of the L2 ladder (Cointelegraph)
- Strategy (MSTR) Makes 100th Bitcoin Purchase, Adds 592 BTC as Bitcoin Price Falls (Coindesk)