Bitcoin's price has faced downward pressure recently, dipping to $80,186 and currently trading around $82,250, reflecting a more than 5% drop from previous levels.
Bitcoin's price has faced downward pressure recently, dipping to $80,186 and currently trading around $82,250, reflecting a more than 5% drop from previous levels. The downturn follows the announcement by President Trump on March 7 regarding the creation of a Bitcoin reserve, using forfeited cryptocurrencies from criminal cases. Rather than buying Bitcoin from the market, this approach led to disappointment among investors who had hoped for government accumulation to signal institutional support. This shift in expectations dampened investor sentiment, especially as there were hopes that government purchases could push the price higher.
In just 24 hours, over $562.33 million worth of liquidations occurred, with long positions hit the hardest. The market’s concern is further highlighted by the current state of Bitcoin’s Relative Strength Index (RSI), which sits at an oversold level of 28. Historically, when the RSI has reached this point, Bitcoin has either hit its bottom or was within a few percentage points of it. Some analysts see this as a sign that Bitcoin may be nearing a price bottom, though others caution that there could still be room for further correction.
Beyond Bitcoin-specific factors, macroeconomic events are also influencing its price. The upcoming U.S. economic reports, including the Consumer Price Index and job openings data, are expected to play a critical role in determining Bitcoin’s short-term direction. Analysts like Iliya Kalchev from Nexo suggest that Bitcoin's short-term price movements will be closely tied to these broader economic developments, which may impact inflation expectations and interest rate decisions.
Despite the recent downturn, there is still optimism about Bitcoin’s longer-term prospects. Analysts like Alex Thorn from Galaxy Digital predict that Bitcoin could reach $150,000 by mid-2025, driven by institutional adoption and government policies that favor the cryptocurrency. This outlook is supported by historical trends and the continued interest in Bitcoin ETFs.
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