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- Bitcoin nears $78K as Arthur Hayes warns of further drops, sparking market-wide selloff and increased volatility.
- The crypto market lost $616M in liquidations as BTC dropped 11% this week, fueled by economic concerns and Fed policies.
- Trade tensions, Fed policies, and weak economic data add uncertainty to Bitcoin’s future, with $70K-$75K levels in sight.
According to a post on X BitMEX co-founder Arthur Hayes, Bitcoin is on track to retest the $78,000 level. Hayes warned that if Bitcoin fails to hold this level, $75,000 will be the next target and a drop into the $70,000-$75,000 range could lead to significant volatility.
Bitcoin experienced another sharp decline, dropping over 4% in the past 24 hours to trade at $82,176. The cryptocurrency is approaching its 2025 low of $78,000 after falling more than 11% in the past week.
The overall cryptocurrency market saw a 7% drop, bringing the total valuation to $2.77 trillion. Ethereum fell by 8%, nearing the $2,000 level, while Solana and XRP recorded losses of 7%. Cardano and Dogecoin suffered declines of 7% and 9%, respectively.
In the past 24 hours, the crypto market faced liquidations worth $616 million. Long positions accounted for most of the losses, totaling $540 million, with Bitcoin alone seeing $231 million wiped out.
Market Turbulence Amid Economic Concerns
A market downturn occurs when trade tensions between the United States and China increase. A new round of U.S. agricultural product tariffs begins Monday after China implemented a response to U.S. import hike measures. Financial markets have become less confident because of this continuous trade dispute.
During an interview, former President Donald Trump explained that his economic strategies worked to retrieve wealth back to America. He admitted these disruptions could appear during the initial period. Commerce Secretary Howard Lutnick declared that the country was not facing economic risks, which led him to dismiss recession-related anxiety.
Analysts equate Trump’s monetary policy outlook with the intensive strategies that Federal Reserve Chairman Paul Volcker applied in the same period. Volcker’s purpose in raising interest rates was to fight inflation, yet this policy created a short-term economic decline before the country achieved its long-term strength.
Federal Reserve Chairman Jerome Powell recently expressed that the central bank plans to monitor interest rate adjustments carefully based on the evolution of economic variables. The weak U.S. nonfarm payroll numbers prompted the official to express possibilities about upcoming interest rate reductions this year.
Bitcoin’s Next Move Remains Uncertain
Arthur Hayes’ tweet suggests that Bitcoin could revisit lower levels, with prices potentially falling between $70,000 and $75,000. Many Bitcoin options are positioned within this range, which could lead to increased volatility if the price moves closer to these levels.
Market participants remain focused on analyzing the scheduled U.S. Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13. Bitcoin price movement in the short term might be affected by upcoming reports.
Investors see the current price decline as a chance to purchase, as they expect market recovery when macroeconomic indicators indicate improvement. Some investors remain reserved because they anticipate additional price decreases focused on economic instability and regulatory matters.
Market recovery depends on how inflation unfolds alongside Federal Reserve policy changes and new regulations. The reduction of inflation, together with Federal Reserve rate cuts, would likely create increased investor confidence. The precise duration of market recovery remains indefinite at this time.
For a sustainable bullish trend in Bitcoin prices, $95,000 must be permanently recaptured. Market conditions stay tense because additional price changes will probably occur throughout the coming days.
Also Read: Metaplanet Inc. Expands Bitcoin Holdings as Michael Saylor Highlights Its Strategy
