In the dusty corners of the financial world, Bitcoin (BTC) has stumbled down to a four-month low of $76,700 on this fateful day, March 11. This drop came hand in hand with a 6% weekly decline in the S&P 500 index, as if the stock market decided to take a leisurely stroll down memory lane, reminiscing about its own six-month lows.
As the stock market corrects itself, investors are pricing in the delightful prospect of a global economic downturn. Who doesn’t love a good crisis, right? 😅
Despite Bitcoin’s 30% tumble from its glorious peak of $109,350, four key indicators are waving flags, suggesting that perhaps, just perhaps, the correction may be nearing its end. 🏁
Bitcoin bear market needs 40% drop, strong USD
Some analysts, bless their hearts, argue that Bitcoin has entered a bear market. But let’s not forget the November 2021 crash, which was a real showstopper, starting with a 41% drop from $69,000 to $40,560 in just 60 days. Talk about a rollercoaster ride! 🎢
Now, if we were to play the comparison game, today’s scenario would suggest a decline to $64,400 by the end of March. But who’s counting? 🤷♂️
The current correction is reminiscent of the 31.5% drop from $71,940 on June 7, 2024, to $49,220 over 60 days. It’s like déjà vu, but with more zeros. 🤑
Back in the late 2021 bear market, the US dollar was flexing its muscles against a basket of foreign currencies, as the DXY index surged from 92.4 in September 2021 to 96.0 by December 2021. But this time, the DXY started 2025 at 109.2 and has since taken a little tumble to 104. Traders are arguing that Bitcoin has an inverse relationship with the DXY index, as it’s seen more as a risk-on asset than a safe-haven hedge. Who knew? 🤔
Overall, the current market conditions show no signs of investors fleeing to cash positions, which is a good sign for Bitcoin’s price. Or is it? 🤷♀️
BTC derivatives healthy as investors fear AI bubble
The Bitcoin derivatives market is holding steady, with the current annualized premium on futures at 4.5%, despite a 19% price drop between March 2 and 11. It’s like watching a tightrope walker, isn’t it? 🎪
For a little perspective, on June 18, 2022, this indicator fell below 0% after a sharp 44% decline from $31,350 to $17,585 in just 12 days. Now that was a wild ride! 🎠
Similarly, the Bitcoin perpetual futures funding rate is hovering near zero, signaling a balanced demand between longs and shorts. Bearish market conditions usually drive excessive demand for short positions, pushing the funding rate below zero. It’s a delicate dance! 💃
Several publicly traded companies with market values exceeding $150 billion have seen sharp declines from their all-time highs, including Tesla (-54%), Palantir (-40%), Nvidia (-34%), Blackstone (-32%), Broadcom (-29%), TSM (-26%), and ServiceNow (-25%). It’s like a game of musical chairs, and everyone’s scrambling! 🎶
Traders are also sweating bullets over a potential US government shutdown on March 15, as lawmakers must pass a bill to raise the debt ceiling. But according to Yahoo Finance, the Republican party is as divided as ever. What a surprise! 🙄
The key points of contention in House Speaker Mike Johnson’s proposal are increased spending on defense and immigration. Because, of course, that’s what we need right now! 😒
If an agreement is reached, risk-on markets, including Bitcoin, are likely
Read More
- NYM PREDICTION. NYM cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- COW PREDICTION. COW cryptocurrency
- ONT PREDICTION. ONT cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- IP PREDICTION. IP cryptocurrency
- PSP PREDICTION. PSP cryptocurrency
- EUR INR PREDICTION
- TRU PREDICTION. TRU cryptocurrency
2025-03-11 20:35