Core Viewpoint - Bitcoin has experienced a significant decline, with predictions indicating further drops due to a liquidity drought in the US financial system and deteriorating investor psychology [1][2][3] Market Conditions - Bitcoin fell 6% to $89,368, with predictions of a potential drop to between $80,000 and $85,000 during the current market weakness [1][2] - The cryptocurrency has declined 28% from its peak of $126,000 in October [3] Investor Sentiment - Current investor confidence in Bitcoin is at an all-time low, exacerbated by macroeconomic tightening and political uncertainty [3] - Analysts suggest that the relationship between Bitcoin and political factors, particularly President Trump's economic policies, is negatively impacting market sentiment [4] Future Predictions - There is a possibility for Bitcoin to rebound quickly if new liquidity enters the market, with potential price targets of $200,000 to $250,000 by the end of the year [4][5] - The market may not see a bullish trend until at least the second quarter of 2026, according to industry experts [4]