The cryptocurrency market seems to be consolidating after facing rejection following the rally earlier this week. Bitcoin (BTC) attempted to breach the $70,000 price level, but did so unsuccessfully. Let’s discuss if the crypto market will dip further after the consolidation, or can it rally once again.
Will The Crypto Market Dip Further?
Bitcoin (BTC) has fallen to the $67,000 price level, after showing signs of a recovery. According to CoinGecko’s BTC data, the original cryptocurrency is down 1.1% in the last 24 hours, 24% in the last month, and 20.4% since late February 2025. BTC has maintained some gains in the weekly and 14-day charts, rallying 0.7% and 2.3%, respectively.
According to CoinGlass data, the cryptocurrency market saw more than $250 million in liquidations in the last 24 hours. It is possible that investors bought the dip when Bitcoin (BTC) fell to the $63,000 mark, and book profits when it began testing the $70,000 level.
The cryptocurrency market is sensitive to substantial market forces. The market faced substantial challenges from macroeconomic forces and geopolitical tensions beginning in October of last year. The liquidity crunch earlier this month added significant sell pressure on investors. The market is unlikely to rebound until larger economic worries are addressed.
Also Read: BlackRock Bitcoin ETF Sees $297 Million Inflows: BTC Hits $69k
Many experts anticipate billions of dollars of tax refunds to flow into the stock market. Some of this capital could find its way into the cryptocurrency market as well. Such development could bring some relief to the falling prices. Moreover, there is a chance that the upcoming Federal Reserve Chair, Kevin Warsh, will reduce interest rates after assuming office. An interest rate cut could lead to a market rally for the cryptocurrency sector. However, things are not set in stone, and how things unfold is yet to be seen.