The CEO of the crypto analysis company Alphractal, Joao Wedson, warned investors by stating that Bitcoin is at a critical support level.
Wedson stated in his statement that Bitcoin should not fall below the support level of 87,500 dollars.
“BTC must not lose the 87,500 dollar level, this is the last support point. This level is based on a strong metric called Alpha Price which relies on on-chain behaviors. We are still above 95,000 dollars right now. However, if 87,500 dollars is broken, it is highly likely that the 75,000 dollar level will also be lost. If this support is maintained, a strong foundation will be formed,” he said.
Wedson said, “If I were you, I would place my stop level just below 87,000 dollars. If this level is broken, losses can be limited.”
The analysis published by Alphractal also stated that economic uncertainties in the US have reached historical peaks. According to the company’s report, the US Economic Policy Uncertainty Index is set to rise to a new record level in 2025. The main reasons behind this increase are listed as follows:
- Excessive customs duties: With the trade wars initiated during Trump’s second presidential term, import duties reaching up to 145% have been implemented in strategic sectors.
- Debt ceiling crisis: On January 2, 2025, the debt ceiling was fixed at $36.1 trillion. This situation brought along concerns about technical default.
- Monetary uncertainty: The FED kept interest rates steady in the range of 4.25–4.50% and postponed plans for interest rate cuts due to high import inflation.
- Dollar loss of confidence: Protectionist policies and financial sanctions have tarnished the dollar’s reputation as a safe haven.
- Regulatory fluctuations: Artificial intelligence, antitrust regulations, ESG policies, and sudden changes in the energy sector have pushed the business world into uncertainty.
- Geopolitical tensions: The Russia-Ukraine war and new crises erupting in the Middle East have affected supply chains.
- Budget deadlocks: Ongoing disagreements over spending plans have increased volatility in financial markets.
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