Bitcoin and Crypto Market Face Significant Losses

The drop has resulted in losing about 30% of Bitcoin’s btc-2.28%Bitcoin value and a significant decline of the broader Crypto Markets React. Over the past month, Ethereum eth-8.42%Ethereum has fallen 29%, while Solana sol-3.24%Solana and Dogecoin doge-8.61%Dogecoin have had even more severe losses of 40% and 38%, respectively. According to a Mar. 11 report by market intelligence platform Santiment, Bitcoin’s slump began after key stakeholders started taking profits in mid-February, triggering a wave of sell-offs.

From Feb. 20 to Mar. 8, 22,702 BTC (almost $1.8 billion at current rates) were moved from private wallets to exchanges. This trend implies that investors were getting ready to sell, which increased the downward pressure.

Bitcoin Accumulation Slows, Sentiment Turns Bearish

At the same time, whale accumulation, which had fueled Bitcoin’s rise following Trump’s election, slowed significantly after his inauguration. Institutional buyers who had aggressively purchased BTC between November and January began reducing their exposure in February. While some high-net-worth investors resumed buying on Mar. 3, the market has yet to rebound significantly.

There has also been a significant change in investor sentiment. A growing number of bearish Bitcoin price projections can be seen in social media data, and many retail investors who entered the market late in 2024 sold at a loss. The average short-term loss for Bitcoin traders is currently -11%, according to Santiment’s study, while long-term holders have lost -5% in the last 12 months.

Crypto Market Hit by Uncertainty

In addition to internal market factors, macroeconomic uncertainty has weighed down on cryptocurrency. Investors are still alarmed by Trump’s new tariff policies and the possibility of a worsening trade war, which has caused more volatility for digital asset markets. Although the administration’s pro-crypto stance triggered initial excitement, concerns over the speed of policy and regulatory implementations have dampened expectations.

Bitcoin is currently priced at about $77,200 as of Mar. 11, down 4% from the previous day. Meanwhile, Arthur Hayes, co-founder of BitMEX, believes that Bitcoin may fall to about $70,000, a 36% correction from its peak and in line with previous bull market retracements. He pointed out that monetary easing by central banks like the Federal Reserve, PBOC, ECB, and BOJ would probably come after a further drop in U.S. stock indexes, such as the S&P 500 and Nasdaq.

Many risk-averse investors could wait for central bank assistance to prevent extended sideways movement and unrealized losses. However, traders should consider buying the dip, according to Hayes. If the $78,000 support doesn’t hold, he previously predicted that Bitcoin may drop to $75,000.

Conclusion

Several factors affect Bitcoin and the larger cryptocurrency market, including profit-taking, declining institutional purchasing, pessimism, and macroeconomic pressures. Even while some forecast more drops ahead of a possible recovery, it is obvious that investors should exercise prudence. The market’s future is heavily reliant on central banks’ reactions and more general economic issues. The upcoming weeks may be crucial for investors in Bitcoin and other cryptocurrencies.