Bitcoin’s recent price drop has rattled investors, and according to Matrixport, the downturn might not be over just yet. The firm warns that Bitcoin could remain under pressure until mid-April, driven by a mix of economic forces that many traders might be overlooking.
From a stronger U.S. dollar to shifting central bank policies, several factors are working against Bitcoin’s recovery. Here’s what analysts are saying about Bitcoin’s next move.
Bitcoin’s price movement is closely tied to the broader financial market, and the rising U.S. Dollar Index (DXY) is playing a key role in its decline. A stronger dollar, driven by tighter liquidity conditions, makes risk assets like Bitcoin less attractive. Matrixport analysts note that Bitcoin often follows a 13-week cycle, suggesting that the current correction may be part of a recurring pattern.
Fed Policy and Market Trends Add Pressure
Another major factor is the Federal Reserve’s monetary policy. With inflation concerns rising, analysts expect the Fed to take a more aggressive stance, which could further weigh on Bitcoin. Additionally, Bitcoin’s increasing correlation with traditional financial markets means it reacts more strongly to macroeconomic trends.
Many traders expect Bitcoin to rebound in mid-April, but Matrixport warns that any price surge around that time could be a bull trap. If Bitcoin does rally, it might not last long, creating a false sense of recovery. According to the firm, Bitcoin’s true recovery may only start after mid-April, following its usual cycle toward a potential high in Q3.
Despite the bearish outlook, some traders remain optimistic. The introduction of Bitcoin ETFs in early 2024 has attracted $39 billion in inflows, shaping market sentiment. However, Markus Thielen from 10x Research suggests that more than half of these inflows may come from arbitrage strategies rather than long-term investments.
Bitcoin has erased all its gains from the U.S. election rally, leading some traders to see this as a prime buying opportunity. Santiment data shows that mentions of “buy the dip” have surged to their highest level since July 2024. Charles Edwards, founder of Capriole Investment, believes Bitcoin could be nearing a short-term bottom, while CryptoQuant CEO Ki Young Ju remains bullish—unless Bitcoin drops below $75,000, which could change the outlook.
For now, Bitcoin remains under pressure, but with bullish sentiment still strong, traders are watching closely to see whether the correction continues or if a rebound is near.
Bitcoin has been here before. The only question is how long this cycle will take to play out.
Bitcoin is expected to recover gradually, with a potential rally in Q3, but short-term volatility remains high due to macroeconomic factors.
As per Coinpedia’s BTC price prediction, 1 BTC could peak at $169,046 this year if the bullish sentiment sustains.
With increased adoption, the price of 1 Bitcoin could reach a height of $610,646 in 2030.
By 2050, a single BTC price could go as high as $12,436,545.
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