Bitcoin prices have recently faced downward pressure, immersed in $80,186, and are currently trading around $82,250, reflecting a drop of over 5% from previous levels. The recession follows President Trump’s announcement on March 7th regarding the creation of a Bitcoin Reserve, using cryptocurrency confiscated from criminal cases. This approach has caused disappointment among investors who wanted government accumulation rather than buying Bitcoin from the market. This shift in expectations weakened investors’ sentiment, particularly as they hoped government purchases could boost prices.
In just 24 hours, the company was liquidated by more than $562.33 million, making its long position the most intense. Market concerns are further highlighted by the current state of Bitcoin’s Relative Strength Index (RSI). This is at a 28-sold out level. Historically, when RSI reached this point, Bitcoin had hit its bottom or within a few percentage points. While some analysts view this as an indication that Bitcoin may be approaching the bottom of its price, others have warned that there may still be room for further corrections.
Beyond Bitcoin-specific factors, macroeconomic events also influence prices. Future US economic reports, including consumer price indexes and job postings, are expected to play an important role in determining Bitcoin’s short-term direction. Analysts like Nexo’s Iliya Kalchev suggest that the short-term price movements of Bitcoin are closely tied to these broader economic developments that could affect inflation expectations and interest rate decisions.
Despite the recent recession, we are still optimistic about Bitcoin’s long-term outlook. Analysts like Galaxy Digital’s Alex Thorn predict that Bitcoin could reach $150,000 by mid-2025. This outlook is supported by historical trends and continued interest in Bitcoin ETFs.