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