Many were hopeful that Bitcoin (BTC) would change it trajectory after it reclaimed the $82,000 price level in May. Not only did things not go according to plan, but BTC seems to continue its bearish trajectory into June 2026. The asset has fallen to the $73,000 price level after falling by more than 4% in the last week, according to CoinGecko data. Let’s discuss what’s going on, and if Bitcoin (BTC) can recover from its price dip soon.

Why Is Bitcoin Facing A Steep Price Dip?

Bitcoin (BTC) began its downward movement in May after high inflation figures. The inflation data greatly reduced the chances of an interest rate cut, which many were anticipating. The new Federal Reserve Chair, Kevin Warsh, was expected to given in to President Trump’s demands for lower rates. But the high inflation figures may keep rates higher for longer. Higher rates often lead to investors taking on less risk as borrowing is difficult.

Bitcoin (BTC) is falling prey to macroeconomic worries and global geopolitical tensions. The US-Iran conflict may see a re-escalation, which may out additional pressure on global crude oil prices. Rising crude oil prices will lead to inflation going up further.

Also Read: BlackRock Sells Half A Billion Bitcoin In One Day, Largest Ever

Large ETF outflows may have also pulled Bitcoin (BTC) down. BlackRock sold over $1.5 billion worth of Bitcoin (BTC) last month. Most of the BTC was absorbed by the market. But the move may have spooked some retail investors.

Will The Asset Recover Soon?

The market is quite bearish right now, hence Bitcoin (BTC) will likely continue on its bearish path for the coming weeks. The asset has been on a sideways trajectory over the last few days and may continue to remain around current levels for the time being.

The US may pass the CLARITY Act in the coming weeks, which could elevate investor sentiments. The legislation aims to bring more regulatory clarity for the crypto sector. The passing of the bill could lead to more cryptocurrency investments, which could push Bitcoin’s (BTC) price.