Bitcoin (BTC) has dropped below the critical $80,000 mark, hitting an intra-day low of $79,540 amid heightened selling pressure. This decline marks the first time Bitcoin has traded below $80,000 since its bullish breakout in November 2024. Currently trading at $79,100, Bitcoin is down 6.5% in the past 24 hours, reflecting growing investor anxiety.
Several macroeconomic factors are fueling the bearish momentum. The market is reacting to former U.S. President Donald Trump’s aggressive tariff policies, regulatory fears, and a significant security breach in the crypto sector. These elements have combined to create a perfect storm, leading to intensified selling pressure and increased market volatility.
Additionally, institutional investors are contributing to the downturn, with BlackRock leading the selloff by offloading billions worth of BTC and ETH holdings. As major altcoins follow Bitcoin’s downward trend, the market sentiment remains deeply bearish.
Trump’s Tariffs and Crypto Market Impact
On Thursday, Donald Trump announced 25% tariffs on imports from Mexico and Canada, effective March 4, along with an additional 10% tariff on Chinese imports.
This move follows a 10% duty introduced in February, raising the total tariff on Chinese goods to 20%. Trump cited the ongoing fentanyl crisis as the primary reason for these protectionist measures.
These aggressive policies have sparked market-wide fears, impacting risk assets, including cryptocurrencies. Investors are increasingly worried about the potential economic slowdown resulting from escalating trade tensions.
The broader implications could lead to reduced global growth, further weakening risk appetite across financial markets.
Key Takeaways:
Trump’s tariffs have escalated trade tensions, impacting global markets. Cryptocurrencies, known for their high volatility, are particularly sensitive to macroeconomic risks. Investors are concerned about global economic slowdown and its effect on digital assets.Institutional Sell-Offs Deepen Bearish Sentiment
Adding to the bearish momentum, BlackRock, one of the world’s largest asset managers, has executed a massive sell-off of Bitcoin and Ethereum.
Data from Arkham indicates that BlackRock sold 5,100 BTC ($441 million) and 30,280 ETH ($71.85 million) through Coinbase Prime, contributing to $754 million in Bitcoin outflows in a single day.
This move comes as a surprise, given BlackRock’s usual strategy of holding assets during market downturns.
The sell-off has significantly impacted market sentiment, driving the Crypto Fear and Greed Index down to 10, a level not seen since 2022. This heightened fear is further compounded by the Solana meme coin crash and Trump’s trade policies.
Key Takeaways:
BlackRock’s sell-off signals a shift in institutional sentiment. Other asset managers, including Fidelity and Ark Invest, have also liquidated large amounts of Bitcoin. The Crypto Fear and Greed Index has plunged to its lowest level in over two years.Hope Amid the Downturn: Bullish Projections Persist
Despite the ongoing sell-off, some analysts remain optimistic about Bitcoin’s long-term outlook. Standard Chartered’s Geoffrey Kendrick forecasts that Bitcoin could surge to $200,000 by the end of this year and potentially reach $500,000 during Trump’s presidency.
Kendrick emphasizes the importance of institutional adoption, noting that increased involvement from financial giants like Standard Chartered and BlackRock could eventually stabilize the crypto market.
Meanwhile, on the macroeconomic front, the U.S. Dollar Index (DXY) has climbed above 107.00, bolstered by robust Q4 GDP data showing 2.3% economic growth.
This has reinforced expectations that the Federal Reserve will maintain its restrictive monetary policy, further strengthening the dollar and putting additional pressure on Bitcoin.
Key Takeaways:
Analysts predict a bullish recovery, projecting BTC to reach $200K this year. Institutional adoption is expected to stabilize the market in the long term. Strong U.S. economic data and a hawkish Fed stance continue to weigh on BTC.Bitcoin Price Analysis
Bitcoin is currently trading at $79,100, reflecting a sharp decline of 6.5% in the last 24 hours. This downward momentum follows a decisive bearish breakout from a descending triangle pattern, signaling continued selling pressure.
The breakdown is reinforced by a clear rejection at the 50-day EMA ($95,500), which is now acting as a dynamic resistance.
Technical Indicators and Chart Patterns:
The formation of a Bearish Engulfing Candle, followed by a Three Black Crows pattern, indicates a strong bearish continuation. The price has broken through key support levels at $86,300 and $82,800, with the next immediate support at $80,400. A close below $80,400 could open the door to further downside, targeting $77,300 and $75,100. The descending trendline reinforces the bearish bias, with resistance at $89,400 and $86,300.Conclusion: Bitcoin’s technical outlook is heavily bearish, as the combination of the descending triangle breakdown and the formation of bearish candlestick patterns suggests a continuation of the downtrend.
Traders should monitor the $80,400 support level closely, as a breach could intensify selling pressure toward the $77,300 zone.
BTC Bull: Earn Real Bitcoin Rewards
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The BTCBULL presale is currently live, with tokens priced at $0.002385 each. So far, $2.89 million has been raised out of a $3.29 million target, signaling robust investor interest. With a price increase expected soon, now is an ideal time to invest in BTCBULL and benefit from its unique reward mechanism.
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