Matrixport's analysis suggests that the current Bitcoin correction may last until March or April. The decline below $80,000 has been driven by global trade tensions.
Global Market Tensions and Bitcoin's Decline
On February 27, Bitcoin fell below $80,000 amid global trade tensions, leading to losses for three major US stock market indices. The Nasdaq 100 fell 7.05% over the past five days, while the S&P 500 and Dow Jones fell 1.33% each. Matrixport highlights the importance of analyzing macroeconomic trends to forecast Bitcoin's price trajectory.
US Dollar Rises Amid Economic Turmoil
The US dollar has been strengthening amid the financial turmoil, exerting downward pressure on Bitcoin prices. The DXY index surged for a third day, reaching 107.40. Donald Trump announced tariff hikes on imports from Canada, Mexico, and China. These factors contributed to Bitcoin's correction, as noted in Matrixport's report.
Optimism Among Bitcoin Bulls
There remains confidence in Bitcoin's growth. Public sentiment indicators noted a surge in 'buy the dip' mentions. Charles Edwards remarked that fear and liquidations may indicate a short-term market bottom. CryptoQuant CEO Ki Young Ju is confident in the continued bull cycle.
Matrixport's analysis points to continued Bitcoin correction until April. However, confidence in long-term growth remains high due to speculation and strategic institutional support.
