Bitcoin price fell sharply to the $102,000 range on Tuesday, extending losses from a 24-hour high above $107,000.
During the day, the Bitcoin price fell as traditional markets saw significant gains. Bitcoin initially rallied on news of the government’s reopening and a potential customs crackdown, but quickly reversed as a broader risk sentiment mixed.
At the time of writing, Bitcoin’s price is around $102,636, hovering close to key psychological support at $99,000.
The bitcoin price came amid President Donald Trump’s unveiling of a proposed $2,000 “tariff dividend” check for Americans — a populist rebate funded by record tariff revenues. Announced Sunday on Truth Social, the plan promises to return “trillions of dollars” collected from global trade taxes and help pay down the nation’s $37 trillion debt.
However, the markets saw it differently. Investors saw the proposal as a de facto stimulus program — one that could reintroduce pandemic liquidity into an economy already showing signs of overheating.
Meanwhile, Washington moved closer to reopening. Senate Democrats joined Republicans in a 60-40 vote late Monday to approve a funding bill that ended a 41-day federal shutdown. The deal — expected to be signed by President Trump — restores pay for federal workers and reopens key services, but has sparked debate in the Democratic caucus over the loss of the health care subsidy extension.
Technical Image: Bitcoin Price Caught Between Bulls and Bears
Bitcoin’s price structure remains finely balanced between support and resistance. The $99,000 level, reinforced by the 55-week exponential moving average, continues to act as a crucial floor. On the upside, Fibonacci resistance is near $109,400, with stronger selling pressure expected at $111,000.
A decisive breakout above $116,000 could restart a rally towards $129,000, the upper limit of Bitcoin price’s broader wedge pattern.
Institutional purchases remain robust. Strategy, the largest corporate Bitcoin holder, disclosed a $49.9 million purchase of 487 BTC last week, bringing its holdings to more than 641,000 coins worth nearly $47.5 billion.
Macro optimism linked to the government’s reopening has supported stocks, spreading modestly into the crypto markets. However, analysts warn that renewed fiscal wrangling or slower ETF inflows could revive volatility and send the Bitcoin price back towards $96,000 or even $93,000.
Despite the near-term uncertainty, long-term indicators remain constructive. Rising production costs and a growing base of long-term owners continue to tighten supply — a setup that has historically preceded major cyclical upswings. With only 5% of the total Bitcoin supply left to mine before the halving in 2028, scarcity is once again becoming a dominant narrative.
Bitcoin Price Chart: From $100,000 to $1 Million?
Over the past decade, Bitcoin’s price rise from a few hundred dollars to over $100,000 has reshaped global finance, creating one of the most dramatic wealth transfers in modern history. The question now: can this exponential growth continue—perhaps even into seven figures?
While models like Stock-to-Flow have lost credibility, their central idea still holds: scarcity drives value. A more grounded approach is to track Bitcoin’s cost of production – the average energy cost to mine one BTC – which has historically acted as a structural floor.
In 2028, after the next halving, the Bitcoin price could reach $175,000 per BTC. If Bitcoin continues to trade above its cost basis, its fair valuation could approach $200,000. By 2032, mining costs could rise to $675,000, implying a potential peak near $1 million if price-to-cost ratios follow historical patterns, according to Matt Crosby and Bitcoin Magazine Pro data.
Bitcoin’s compound annual growth rate has slowed but remains robust. Regression-based models suggest a price between $2 million and $10 million in 2040—though such projections are forward-looking and should be treated with caution.
Ultimately, Bitcoin’s price will depend on macro liquidity, real returns and adoption. As issuance declines and demand continues, production costs and capital rotation from traditional assets are likely to anchor the next phase of growth.
If history rhymes, the mid-2030s could mark Bitcoin’s approach to a seven-figure era — though, as always, models govern expectations, not destiny.