Bitcoin’s price has dropped below $108,000, underscoring persistent volatility driven primarily by heightened trade tensions between the United States and China. This recent slide was intensified as traders reduced their risk exposure ahead of an anticipated meeting between the two nations’ leaders, reflecting broader economic uncertainty.

The market’s reaction was widespread, affecting not just Bitcoin but also major altcoins. Ethereum, BNB, and Solana experienced declines of 4.8%, 6%, and 4.5% respectively. Spot crypto ETFs saw significant outflows, with over $40 million withdrawn from Bitcoin funds and $145 million from Ethereum-based instruments.

Analysts predict continued market instability. The Fear & Greed Index has dropped to 34, signaling increased anxiety among investors as they await crucial US inflation data. This inflation report could impact future decisions by the Federal Reserve, with markets currently pricing in a high probability of a rate cut.

Technical analysts warn that Bitcoin’s breakdown below $108,000 may signal the end of its bull run for now. Some experts anticipate a prolonged bear market—potentially lasting into late 2026—with prices trading as low as $70,000-$80,000 or even further, based on historical patterns and current bearish market structures.

In summary, Bitcoin’s recent price movements highlight the asset’s vulnerability to macroeconomic shocks and escalating geopolitical tensions. Investors should remain cautious and closely monitor ongoing developments, as volatility looks set to continue in the months ahead.