Bitcoin Experiences 12.6% Decline, Largest Drop Since FTX Collapse
Bitcoin's recent trading has shifted bearishly after a prolonged range above $90K, experiencing a 12.6% decline this week, marking its largest drop since the FTX bankruptcy in November 2022.
- Weakened institutional demand for Bitcoin and Ethereum has pressured the CME futures market towards backwardation.
- The Nasdaq index has also faced downward pressure, contributing to Bitcoin's decline.
- Upcoming tariffs against Canada and Mexico may further impact market sentiment as the March 4 deadline approaches.
- Expectations surrounding the U.S. core Personal Consumption Expenditures (PCE) index could lead to disappointment, potentially indicating economic weakness instead of encouraging risk assets.
- Inflation expectations have risen, which might overshadow the expected soft PCE reading.
Technical analysis suggests that breaking below the $90K-$110K range could result in a slide to $70,000, with potential worst-case support at $72,000–$74,000.
Currently, Bitcoin is testing a demand zone around $82,000, identified through on-chain metrics. If historical patterns hold, Bitcoin may stabilize around this level before recovering.