Matrixport analysts have allowed the possibility of bitcoin correction to continue until April

The material is not an investment recommendation and is published for informational purposes only

28.02.2025 - 15:05

637

2 min

The company relied on macroeconomic trends and central bank policies to predict the price movement of the first cryptocurrency.

What’s new? Matrixport analysts, based on macroeconomic trends and recent central bank actions, suggested that bitcoin’s current correction could last until March or April before the asset tries to rise to previous highs.

Material by Cointelegraph

What else is known? On February 27, bitcoin fell below $80 000 for the first time in a week amid a broader market sell-off triggered by the escalating US trade war with Canada, Mexico, the European Union, and China.

Three major US stock indexes also suffered losses, with the Nasdaq 100 falling 7,05% over the past five days, while the S&P 500 and Dow Jones Industrial Average fell 1,33% each.

“Analyzing macroeconomic trends and central bank policies gives us a clear edge in forecasting Bitcoin’s price trajectory.This type of analysis is only becoming more crucial, especially as Wall Street investors—who track these macro factors daily—are now actively participating in Bitcoin trading,” Matrixport analysts write in a new report.

Meanwhile, the US dollar index (DXY) edged closer to 107,4 after three straight days of gains as traders used the fiat currency to hedge against the stock market crash.

The rise in DXY came after US President Donald Trump confirmed the increase in tariffs. Thus, from March 4, duties of 25% are imposed on imports from Canada and Mexico, while duties on shipments from China are raised by 10%.

“A stronger US dollar causes this liquidity measure to decline, which suggests downward pressure on Bitcoin prices. Global liquidity peaking in late December 2024—driven by a surging US dollar—provides a clear explanation for Bitcoin’s ongoing correction,” Matrixport concluded.

Author: