NewsBTC
Mar 12, 2025
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Bitcoin Falls Nearly 30% from Recent Highs Amid Market Volatility

2 min

Bitcoin has decreased significantly, dropping from a peak of 109k to 77k, marking a nearly 30% loss. This decline raises concerns about a potential bear market, although historical data shows that such corrections are common in Bitcoin's bull markets.

Key points include:

  • The recent drop mirrors past corrections; Bitcoin lost over 50% in May 2021 before recovering.
  • Bitcoin reached a high of 73k at the start of 2024 but fell to 55k by May.
  • Macroeconomic factors have affected Bitcoin and stock indices; the Nasdaq is down over 10%, and the S&P 500 has declined 8.5%.
  • There is a rising probability of a US recession, currently estimated at 39% for 2025.
  • On-chain metrics indicate caution; the Bitcoin Bull-Bear Market Cycle Indicator is at its most bearish level this cycle.
  • Whale accumulation is slowing, and spot BTC ETFs have turned into net sellers, indicating reduced institutional demand.
  • The 50 Simple Moving Average (SMA) on the weekly chart is a critical metric; it currently sits at 75k.
  • A weekly close below 75k may confirm a bear market trend.