Lucía Peña
Bitcoin’s price is under continued downward pressure, declining 2% today and falling to around $81,500. Analysts are closely watching BTC’s correlation with Nasdaq and S&P 500, both of which are approaching a Death Cross, a technical pattern that often signals a bearish trend. The key question remains: Will Bitcoin break below $80K before attempting a recovery?
For years, Bitcoin has closely mirrored major equity indices, particularly the S&P 500 and Nasdaq. Over the past three trading sessions, the S&P 500 has wiped out $2 trillion in market value, with additional declines in futures trading post-market close, erasing another $120 billion, as reported by The Kobeissi Letter.
Macroeconomic Factors Impact Bitcoin’s Trajectory
A brief mid-March Bitcoin rally was quickly reversed following Trump’s 25% auto tariffs announcement. BTC attempted to push past $90,000 but faced stiff resistance at $89,000. Further tariff moves, particularly on Russia, have increased the risk of Bitcoin slipping below $80K.
Data from Barchart indicates that Bitcoin, along with S&P 500 and Nasdaq, is forming a Death Cross, leading to speculation on whether this could mark the market bottom. Historically, some Death Cross formations have coincided with the end of downward trends, making the upcoming week highly volatile for Bitcoin and equities.
Gold vs. Bitcoin: Peter Schiff Criticizes BTC’s Digital Gold Status
Renowned economist Peter Schiff took this opportunity to criticize Bitcoin’s status as “Digital Gold.” He pointed out that gold has surged to new all-time highs above $3,090, while Bitcoin and stocks continue to decline.
“If you still believe Bitcoin is digital gold, think again,” Schiff stated, reinforcing the ongoing debate about Bitcoin’s role as a safe-haven asset.
Bitcoin and Global M2 Money Supply: A False Narrative?
Despite the common belief that Bitcoin’s price movement aligns with global M2 money supply, crypto analyst Ali Martinez urges caution. Martinez highlights that the global money supply has dropped by nearly $1 trillion in the past two weeks, contradicting the expectation of a liquidity-driven Bitcoin rally.
Adding to the bearish sentiment, Martinez also reported a significant sell-off by Bitcoin miners, with over 2,400 BTC offloaded last week, totaling approximately $220 million in liquidations.
US Inflation Data Adds More Downside Risk for Bitcoin
Bitcoin is also feeling the pressure from core US PCE inflation data, which revealed persistent inflationary concerns. Market experts warn that liquidity tightening could last longer than anticipated, adding further downside risk for BTC.
As of press time, Bitcoin is trading at $81,664, down 1.8%, with daily trading volume at $17.2 billion. Meanwhile, BTC futures open interest has dropped by 2.7%, falling below $53 billion, while 24-hour liquidations surged to $64 million, with $54 million in long liquidations, according to Coinglass data.
With macroeconomic uncertainties and technical indicators signaling volatility, Bitcoin traders are bracing for a highly turbulent week ahead.
