TLDR
- Bitcoin is currently trading at around $84,000, below the psychological $85,000 mark
- Long-term holders’ profits have fallen to a two-year low according to the MVRV indicator
- Trump administration exempted Chinese electronics from tariffs, providing temporary relief
- Long-term holders have sold over 6,596 BTC (worth $550 million) in the past two weeks
- Michael Saylor hinted Strategy may purchase more Bitcoin despite reporting $5.9 billion in unrealized losses
Bitcoin’s price has steadied around $84,000 as markets respond to limited tariff exemptions in the escalating US-China trade dispute. The world’s largest cryptocurrency has faced significant pressure in recent weeks, trading well below the key psychological barrier of $85,000 that has proven difficult to breach.
As of Monday morning, Bitcoin was trading at $84,447, showing minimal movement with just a 0.2% decrease over the past 24 hours. The cryptocurrency has managed to recover from recent lows of $74,000 but remains under pressure.
Market sentiment appears cautious as traders evaluate the impact of ongoing trade tensions between the United States and China. While the White House announced that Chinese electronics imports would be exempt from new tariffs, providing some relief, President Trump indicated these exemptions would be temporary.
The exemptions helped ease immediate concerns about economic impact, though Trump’s statement that he plans to announce separate tariffs on electronics and semiconductors soon has kept market anxiety high.
Long-Term Holders Under Pressure
Long-term Bitcoin holders are facing their lowest profit levels in two years, according to market data. The MVRV Long/Short Difference indicator has hit its lowest point since March 2023, showing a shift in market dynamics.
These veteran investors, who typically maintain their positions through market volatility, have recently sold off over 6,596 BTC, worth approximately $550 million. While this represents a relatively small portion of total holdings, it signals growing caution among typically steadfast investors.
Short-term holders appear to be gaining market share as they attempt to capitalize on price fluctuations in the current uncertain environment. This shift in holder composition could further delay Bitcoin’s recovery.
The selling pressure comes at a time when Bitcoin has struggled to break through the $85,000 resistance level for nearly two months. Technical indicators point to continued bearish momentum in the short term.
Corporate Interest Remains Strong
Despite market hesitation, Michael Saylor, chairman of Strategy, has hinted that his company may purchase more Bitcoin. Strategy currently holds the largest corporate Bitcoin reserve.
Saylor recently made cryptic posts on social media platform X, including a BTC holdings tracker that has previously signaled upcoming Bitcoin purchases by the company.
These potential purchases would come shortly after Strategy disclosed a $5.9 billion unrealized loss on its digital asset holdings. The company had already purchased 80,715 Bitcoins through the first quarter of 2025.
The interest from institutional investors like Strategy remains a potential positive factor for Bitcoin’s price outlook, even as retail and long-term holder sentiment wavers.
Technical Outlook Remains Cautious
Bitcoin’s price action shows it hovering just above the crucial support level of $82,619. If this support fails to hold, analysts suggest the price could drop toward the $80,000 mark.
A continued bearish trend might push the price down to $78,841, which would represent another important support level to watch. Breaking below this would confirm a deeper market downturn.
However, if Bitcoin manages to break above and maintain the $85,000 level, it could trigger a recovery toward $86,848 and potentially $89,800. Such a move would help restore investor confidence.
The broader cryptocurrency market has shown mixed performance. Ethereum (ETH) rose 0.4% to $1,622, while XRP fell 0.4% to $2.13. Solana posted stronger gains of 2.7%, while Cardano and Polygon dropped 0.6% and 3.2% respectively.
Meme coins have shown varying results, with Dogecoin holding steady and Trump token falling 3.1%.
Bitcoin’s current price stagnation comes amid growing concerns about a potential US recession, which has further weakened risk appetite in the market. Cryptocurrency assets typically underperform during periods of economic uncertainty.
Trade tensions between the US and China have escalated rapidly, with Trump increasing tariffs to a cumulative 145%, prompting retaliatory measures from Beijing with tariffs of 125%.
Speculative assets like cryptocurrencies often suffer during such periods as investors seek safer havens like gold and the Japanese yen.
Market watchers remain on edge as they monitor developments in the trade dispute and assess potential impacts on the global economy and risk assets like Bitcoin.
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