On March 6, U.S. President Donald Trump signed the long-awaited decree for the establishment of cryptocurrency funds in the U.S., however, against this backdrop, Bitcoin and other digital assets lost value. There are several reasons for this.
The main factors that led to the bearish trend in the BTC and other cryptocurrency markets are as follows:
1. Economic instability provoked by trade wars initiated by Trump.
2. Disappointment among traders who expected the president to initiate the purchase of digital assets with budget funds.
3. Capital outflow from cryptocurrency derivatives, which amounted to $876 million from March 3 to March 7.
4. The hacking of the cryptocurrency exchange Bybit, during which Ethereum worth $1.46 billion was stolen.
5. The decline of the U.S. stock market, in particular, the collapse of Tesla (NASDAQ:TSLA) shares, which fell by 40% over the past month.
All these factors are likely to continue to put pressure on the digital asset market in the near future. An analysis of the Bitcoin price chart clearly indicates that a trend reversal is not expected in the near term.