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Bitcoinâs correction may extend to April: Matrixport research
Bitcoinâs current correction could persist until March or April before attempting a rebound, according to Matrixport.
On Feb. 27, Bitcoin fell below $80,000 for the first time in a week amid a broader market sell-off driven by rising global trade tensions. The US stock market also suffered losses, with the Nasdaq 100 dropping 7.05% over five days, while the S&P 500 and Dow Jones fell 1.33% each.
Matrixportâs Feb. 28 report emphasizes that macroeconomic trends and central bank policies are crucial for forecasting Bitcoinâs trajectory, especially as Wall Street investors increasingly participate in Bitcoin trading.
US Dollar Strengthens, Pressuring Bitcoin
The US dollar has been rising as traders seek safety. A stronger dollar reduces global liquidity, putting downward pressure on Bitcoin prices. Matrixport attributes Bitcoinâs correction to liquidity peaking in late December 2024 due to the dollarâs surge.
The US Dollar Index (DXY) climbed for a third straight day, nearing 107.40, after US President Donald Trump reaffirmed tariff hikesâ25% on imports from Canada and Mexico and an additional 10% on Chinese goods starting March 4.
Bitcoin ETFs in the US have seen $39 billion in inflows since launching in January 2024. However, 56% of these funds are likely tied to arbitrage strategies rather than long-term investments, according to 10x Researchâs Markus Thielen.
Bitcoin Bulls Remain Active
Despite the correction, some traders see an opportunity to âbuy the dip.â Santimentâs tracker shows a surge in mentions of this strategy, reaching the highest level since July 2024.
Capriole Investmentâs Charles Edwards suggests fear-driven liquidations may signal a short-term bottom. Meanwhile, CryptoQuant CEO Ki Young Ju maintains the bull cycle isnât overâunless Bitcoin falls significantly below $75,000.