Bitcoin Faces Seven-Week Price Decline Amid Market Uncertainty
For seven consecutive weeks, Bitcoin has seen a series of price drops. It fell from its January high of $109,000 to around $77,000 on March 11. This decline wiped out about 30% of Bitcoin’s value and affected the broader crypto market.
ethereum, Solana, and Dogecoin also suffered. Ethereum lost 29%, while Solana and Dogecoin dropped by 40% and 38%, respectively. According to Santiment, the downturn started when key players began cashing out in mid-February.
From february 20 to March 8, nearly 22,702 BTC (about $1.8 billion) moved from private wallets to exchanges. This suggests investors were preparing to sell,increasing downward pressure.
whale accumulation, which drove Bitcoin’s rise after Trump’s election, slowed after his inauguration. Institutional buyers who bought heavily between November and January started reducing their holdings in February.
Investor sentiment has also shifted. Social media data shows more bearish Bitcoin price predictions. Many retail investors who joined late in 2024 sold at a loss. The average short-term loss for Bitcoin traders is -11%, while long-term holders lost -5% in the last year.
Macroeconomic factors, like Trump’s new tariff policies and trade war concerns, have added to the volatility. Despite initial excitement over the governance’s pro-crypto stance, policy and regulatory uncertainties have dampened expectations.
Bitcoin is now priced at about $77,200, down 4% from the previous day. Arthur Hayes, co-founder of BitMEX, predicts Bitcoin could fall to $70,000. This would be a 36% correction from its peak, similar to past bull market retracements.
Hayes believes central banks might ease monetary policies after further drops in U.S. stock indexes. Risk-averse investors may wait for central bank assistance. However, Hayes advises traders to consider buying the dip. If the $78,000 support fails, Bitcoin may drop to $75,000.
