Market Analysis: Bitcoin’s Biggest Drop Since FTX
Bitcoin (BTC) has recorded its steepest three-day decline since the November 2022 FTX collapse, plunging 12.6% and sending shockwaves through the crypto market. This dramatic selloff coincides with growing concerns over Trump’s tariff policies, which have triggered a broader market retreat.
Key Market Developments
- BTC price dropped from $110K to test critical support at $82,000
- Institutional demand weakening, pushing CME futures toward backwardation
- Technical analysis suggests potential further decline to $70,000-$74,000 range
- Short-term holder realized price indicates key support at $82,000
Macro Factors Driving the Decline
Several macro factors are contributing to Bitcoin’s current weakness:
- Delayed implementation of Trump’s national BTC reserve plans
- Tightening fiat liquidity conditions
- Upcoming March 4 deadline for Canada/Mexico tariffs
- Rising inflation expectations (Conference Board shows jump to 6%)
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Technical Outlook
According to Markus Thielen of 10x Research, the break below the $90K-$110K range suggests potential downside to $70,000. However, key support levels exist:
- Primary support: $82,000 (short-term holder realized price)
- Secondary support: $72,000-$74,000 range
- Current bounce level: $86,000
Expert Perspectives
Noelle Acheson, author of ‘Crypto is Macro Now’, suggests that even a positive PCE reading on Friday may not provide immediate relief: ‘This bad mood is largely macro-driven, with concerns over tariffs, high corporate valuations, and AI portfolio exposure.’
Market Implications
Despite the sharp decline, Bitcoin’s unique position as both a risk asset and digital gold haven could provide support. The current price levels may attract long-term investors, potentially stabilizing the market.
Source: CoinDesk