Bitcoin took a sharp plunge on Friday, falling more than 12% after President Trump announced a 100% tariff on Chinese imports, sparking fears of a new trade war.
The news sent shockwaves through the crypto market, wiping out over $19 billion in liquidations and causing panic selling among millions of traders.
Bitcoin briefly dropped below $105,000 before bouncing back slightly.
This plunge mirrored broader market fears as investors rushed to safer assets, amidst uncertainty over escalating US-China tensions and economic stability.
But, in the face of deep uncertainty, some experts are keeping calm and asked investors to show some faith in the fundamentals of the flagship cryptocurrency.
Why Bitcoin can make a big rebound this week
As per Cryptonews.com, economist Timothy Peterson thinks there’s a good chance Bitcoin could make a strong comeback this week, possibly jumping as much as 21%.
Looking at historical data going back to 2013, he notes that October has actually been Bitcoin’s second-best month, averaging a gain of 20.1%, just behind November.
Big drops in October are pretty rare; they’ve only happened four times in the past ten years, and three of those were followed by sharp recoveries.
Even though Bitcoin recently dipped below $102,000 after President Donald Trump announced new tariffs, Peterson stays optimistic.
He points out that about half of October’s usual gains might already be in the books, but the rest of the month still looks favorable for a solid rebound.
Based on Bitcoin’s typical cycles of liquidity and market sentiment, analysts are hopeful that the month could end with Bitcoin regaining momentum and possibly breaking through some key resistance levels in the weeks ahead.
Why the latest crash is not unusual
Volatility is just part of life in the crypto world. Digital assets don’t just react to economic headlines; they are also highly sensitive to social media chatter, regulatory news, and tech developments.
Experts say that while these ups-and-downs can be risky, they also open the door for traders and investors who know how to ride the waves.
Historically, October tends to be a bumpy month for crypto, but these dips are often followed by strong rebounds as the market finds its balance.
Bottom line: the crypto space is fast-moving and unpredictable, with big risks, but potentially big rewards too.
Several factors drive this heightened volatility. For one, the market is still relatively young, so price discovery is ongoing, new investors and speculative trades can swing prices dramatically.
Unlike traditional financial markets, crypto isn’t heavily regulated, so announcements of new policies or legal actions can spark sharp reactions.
The fact that crypto markets run 24/7 only adds fuel to the fire, with no breaks or circuit breakers to cool things down.
Source: https://coinjournal.net/news/why-bitcoin-could-rebound-up-to-21-this-week-experts-explain/
