Bitcoin Declines as Investors Shift Focus to Gold Amid Market Concerns

The crypto market is experiencing a downturn, attributed to the lack of a U.S. government plan to purchase bitcoin as part of a strategic reserve and ongoing macroeconomic concerns. Key developments include:

  • Bitcoin (BTC) declined to $80,000, falling below its 200-day moving average.
  • Ethereum (ETH) dropped below the crucial support level of $2,100.
  • Investor sentiment has shifted, with some seeing BTC as a risky asset, prompting a flight to gold.
  • The Federal Reserve is cautious about rate cuts due to tariffs complicating economic indicators.
  • Japan's rising base pay is increasing expectations for a Bank of Japan rate hike.
  • Low trading volumes over the weekend may lessen the significance of bearish trends.

Upcoming Events

March 10: Launch of Movement (MOVE) Ethereum-based L2 blockchain mainnet.

March 11: Horizen (ZEN) mainnet upgrade to version ZEN 5.0.6.

March 11: U.S. House Financial Services Committee hearing on stablecoins and CBDCs.

March 12: Hemi (HEMI) mainnet launch.

March 15: Athene Network (ATH) mainnet launch.

Market Overview

BTC is down 4.61% at $82,373.88; ETH is down 1.6% at $2,101.66. The CoinDesk 20 index fell by 6.4% to 2,632.12.

Technical Insights

BTC has broken below a pennant pattern, suggesting further declines could retest support around $73,800.

Token Unlocks

  • Aptos (APT) unlocking 1.93% of circulating supply worth $62.09 million on March 12.
  • Starknet (STRK) unlocking 2.33% worth $10.25 million on March 15.

Derivatives Positioning

Negative perpetual funding rates for BTC, SOL, ADA, XRP, and TRX indicate a bearish market sentiment.

Source: Holder.io