Bitcoin’s Correction May Not be Over Yet, Says Matrixport

Bitcoin’s price decline may persist into March or April before attempting a recovery, according to Matrixport.

The cryptocurrency dipped below $80,000 on Feb. 27 as global market uncertainties triggered a sell-off. Wall Street also saw losses, with the Nasdaq 100 down over 7% in five days, while the S&P 500 and Dow Jones each fell by 1.33%.

Matrixport emphasized that macroeconomic factors and central bank policies are increasingly shaping Bitcoin’s trajectory, especially as institutional investors integrate it into their portfolios.

A strengthening U.S. dollar added to Bitcoin’s struggles, with the Dollar Index (DXY) climbing for a third day, nearing 107.40. The rally came after U.S. President Donald Trump reaffirmed tariffs on Canadian, Mexican, and Chinese imports, set to take effect on March 4.

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Bitcoin ETFs, which have drawn $39 billion since their January 2024 launch, are also playing a role in market dynamics. Analysts estimate that 56% of these inflows stem from arbitrage strategies, while the rest reflect long-term investments.

Despite the downturn, sentiment around “buying the dip” has surged, reaching levels last seen in July 2024. Some analysts suggest Bitcoin is nearing a short-term bottom, though continued declines below $75,000 could challenge the bullish outlook.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.