Bitcoin Price Crashes Toward $102,000 as Wall Street Gains, Crypto Reverses

Bitcoin price fell sharply to the $102,000s range on Tuesday, extending losses from a 24-hour high of above $107,000. Throughout the day, Bitcoin’s price declined as traditional markets saw significant gains. Initially, Bitcoin rallied following news of the government reopening and a potential tariff check, but it quickly reversed as broader risk sentiment became mixed. At the time of writing, Bitcoin’s price hovers near $102,636, with critical psychological support at $99,000.

The price movement coincided with President Donald Trump’s unveiling of a proposed $2,000 “tariff dividend” check for Americans, a populist rebate funded by record tariff revenues. Announced on Truth Social, the plan aims to return “trillions of dollars” from global trade duties while helping to manage the $37 trillion national debt. Markets, however, viewed this as a de facto stimulus program, potentially reintroducing pandemic-style liquidity, which raised investor concerns about an already overheating economy.

Meanwhile, progress in Washington brought optimism. The Senate passed a stopgap funding bill, ending a 41-day federal shutdown with a 60–40 vote. This bipartisan deal, expected to be signed by President Trump, restores pay for federal workers and reopens key services. However, it also sparked debate within the Democratic caucus over the lack of health subsidy extensions, highlighting ongoing political tensions.

Bitcoin’s price remains finely balanced between support and resistance levels. The $99,000 level, supported by the 55-week exponential moving average, serves as a key floor. On the upside, Fibonacci resistance is seen near $109,400, with potential selling pressure expected at $111,000. A breakout above $116,000 may trigger a rally toward $129,000, at the upper boundary of Bitcoin’s broadening wedge pattern.

Institutional buying remains strong, with Strategy — the largest corporate Bitcoin holder — acquiring 487 BTC for $49.9 million, bringing its holdings to over 641,000 BTC valued at $47.5 billion. Macro optimism tied to the government reopening has bolstered equities, also affecting crypto markets modestly. However, analysts warn that renewed fiscal wrangling or slower ETF inflows could reignite volatility, potentially driving Bitcoin prices down to $96,000 or even $93,000.

Long-term indicators remain constructive. Rising production costs and an expanding base of long-term holders continue to tighten Bitcoin’s supply, a dynamic that has historically preceded major cyclical upturns. As only 5% of Bitcoin’s total supply remains to be mined before the 2028 halving, scarcity is becoming a dominant driver of value. Analysts project that Bitcoin could reach $175,000 per BTC by 2028, with mining costs and historical price-to-cost ratios suggesting potential peaks nearing $1 million by 2032.

Bitcoin’s decade-long journey from a few hundred dollars to over $100,000 has reshaped global finance, marking a dramatic shift in wealth dynamics. While Stock-to-Flow models have lost credibility, the broader idea of scarcity driving value persists. By 2040, regression models estimate Bitcoin’s price could range between $2 million and $10 million, though such forecasts remain subject to macroeconomic variables like liquidity, real yields, and adoption. If history rhymes, Bitcoin’s mid-2030s trajectory may indeed approach the seven-figure range.