Why the encryption declined today? Fear controls the BTC price drop to less than 80 thousand dollars

Tldr

• Bitcoin fell to a lower
• Founding investors withdrew money for four consecutive weeks, with $ 876 million of external flows in the week ending March 7
• Trump’s tariff policies, recession comments, and disappointment from the national encryption reserve plan that contributes to uncertainty in the market
• The Crypto Fear & Greed index has decreased to 17 years, reflecting the intense fear of the market
• Some analysts expect Bitcoin to decrease to $ 70,000, while others expect a recovery based on the increase of M2 liquidity

Bitcoin fell below $ 80,000 for the first time since November 2024, as it fell to $ 7,800 on Monday. The price of the leading cryptocurrency decreased about 14 % in only one week. This decrease comes amid the increasing uncertainty in the market and increased concerns about American economic policies.

The low price has died on all gains since mid -November. Technical indicators indicate that more drops may be in the future. Bitcoin fell under the main support on the SISESESAR for 200 days 85,722 dollars.

Other cryptocurrency currencies followed Bitcoin rolling direction. Ethereum has decreased to 1860 dollars, its lowest price since November 2023. XRP has decreased by 4 % in the past 24 hours. Solana and Cardano decreased by 7 % and 8 %, respectively.

Market morale has turned significantly in recent months. Fear and greed indexWhich rose above 92 last year, now stands in only 17 years. This reading refers to “extreme fear” among encryption investors.

The last sale has led to huge qualifiers. In a period of four hours, the total encryption references exceeded $ 195 million. Long positions constituted $ 161 million in this liquidation.

Founding investors withdrew the capital from digital assets. The week ended on March 7, $ 876 million in external flows of investment products, digital assets. This represents the fourth consecutive week of external flows.

The total external flows during a four -week period amounted to $ 4.75 billion. This reduced the flow of one year to the date to $ 2.6 billion only. Bitcoin specifically lost $ 756 million in the last week.

The total assets subject to digital money decreased by 39 billion dollars from its peak. They are now sitting at $ 142 billion, which is the lowest level since mid -November 2024.

Trump

There are several factors that lead the current market shrinkage. President Trump’s recent introductory policies created uncertainty. It has imposed and imposed an aggressive tariff on Canada, China and Mexico in recent weeks.

When asked in an interview with Fox News about whether these tariff policies could lead to recession, Trump answered that the country would witness a “transitional period”. He suggested that “economic pain in the short term is likely.” These comments are anxious investors.

Trump’s national coding plan was also disappointed by many encryption fans. Many expect the plan to include large government purchases of bitcoin. However, Trump announced that the government will only maintain the fame that was seized from illegal activities.

Options

The options market played a role in the growing bitcoin fluctuations. The BitFinex Alpha report highlighted that 3 billion dollars in Bitcoin and Ethereum contracts ended last Friday. This paid price fluctuations in the market.

The achieved options decreased fluctuations above 80 percent. These signals have increased instability, as merchants’ reaction to change the total economic conditions. The implicit fluctuation jumped by 35.7 percent before the last White House encryption summit.

The data on the series revealed severe losses among merchants. The losses achieved through the market participants amounted to $ 818 million a day. On February 28 and March 4th among the largest loss events for one day in this market round.

Bitcoin’s relationship with traditional markets is still strong. Roslan Linga, head of markets at Youhodler, noticed, Prices in Bitcoin and American stocks are closely aligned from a medium to long -term perspective.

“The encryption market is unlikely if the stock market is subjected to correction or retreat,” Le Benkha told FXSTREET. “Investors are currently seen as bitcoin as highly dangerous assets, and often interact with the broader market morale with more powerful than traditional financial markets.”

The American bond market refers to a risk environment. This has led to high pressure pressure in both the stock market and encrypted currencies. The invested uncertainty increased during the past week.

Market experts have mixed opinions about the following moves of Bitcoin. Arthur Hayes, former CEO of Bitmex, expects Bitcoin to drop to $ 70,000 before a renewable rising cycle begins. “If you fail at $ 78,000, $ 75,000 is the next intersection,” Hayes wrote.

Meanwhile, Microstrategy has announced plans to raise up to $ 21 billion. This will be by 8.00 % A.00 % A. The company may use this money for more bitcoin acquisitions.

Some analysts argue that the price of bitcoin follows liquidity trends. M2 Money Supply, which includes criticism, examination of deposits, and easily convertible assets, may recover after exit. If this trend continues, Bitcoin may start grinding higher in the coming weeks.

Positive economic data and inflation may feed the monetary mitigation expectations. Linga suggests that this can encourage capital flows on the financial markets. This would provide support for encryption prices.