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.

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.