Bitcoin’s recent decline shows signs of further deterioration according to Matrixport analysts who expect it to continue through March or April before rising again. On February 27 Bitcoin dropped under $80,000 for the first time in one week because of a market-wide stock decreases. 

International trade wars continue to limit investor confidence as they push financial markets lower. The top United States stock market groupings declined with Nasdaq 100 going down 7.05% in five days and S&P 500 and Dow Jones Industrial Average losing 1.33%.

The analysis firm Matrixport uses macroeconomic data and central bank moves to predict Bitcoin price behavior. On February 28 the research report showed institutional investors follow daily macroeconomic indicators and steer Bitcoin trades more frequently.

Bitcoin ETFs Surge with $39 Billion in Inflows

The dollar’s growing value explains why Bitcoin falls in market value. As Matrixport explains market conditions usually weaken Bitcoin when the dollar strengthens because it pulls money away from other assets. 

The U.S. Dollar Index (DXY) continues to advance for three straight days to almost touch 107.40 as investors flow into dollars to protect their wealth during financial market volatility. U.S. President Donald Trump supported his tariffs plan when he announced on March 4 that he will charge Canada and Mexico 25% more and China 10% more.

These moves boosted the dollar value further. The rising popularity of Bitcoin Exchange-Traded Funds in the US strongly affects Bitcoin pricing today. Bitcoin ETFs received $39 billion of investor capital since their launch in January 2024 because more people now invest in cryptocurrency as a standard asset. 

Markus Thielen from 10x Research points out that ETF flows to Bitcoin include 56% of temporary trades while the rest involves long-term asset purchases. Recent financial shifts have divided the attitudes of cryptocurrency investors toward their investments. 

The habit of investors buying BTC when prices decline continues as they expect the value to recover. Santiment’s social sentiment data shows retail investors expressing record buying the dip engagement that started in July 2024.

Bitcoin’s Recovery Hinges on Key Support Levels

Experts show decreasing concern about BTC because they think the market is nearly finished its downward movement.Capriole Investment founder Charles Edwards predicts the recent market downturn has hit bottom based on heightened fear levels and the latest selling pressure. 

CryptoQuant CEO Ki Young Ju supports Bitcoin’s lasting market direction by saying the bull market remains active. Yet he warns that a large recovery may not happen unless Bitcoin stays over $75,000.

I'm bullish. The bull cycle is not over.

The cycle I’m referring to includes a potential 30% drawdown at some point. If the price drops significantly below 75K, I’d be wrong.

I didn't change my stance—I’ve been consistent about the bull cycle and the possibility of a 30%…

— Ki Young Ju (@ki_young_ju) February 28, 2025

The length of Bitcoin’s corrective trend well depend on market sentiment changes economic state and USD strength. As global liquidity growth and economic challenges ease Bitcoin may resume its upward trend toward its past records during the following months. Market participants will carefully observe important support areas as they search for signs that Bitcoin will begin rising again.

Bitcoin’s future direction in the next several months depends on both economic trends and how investors feel about the market combined with the available supply of BTC. Professional market analysts report both positive and negative market signals at the moment. 

When BTC maintains its position above these sets of important supports a market rally should take place. When prices reach below $75,000 it probably indicates a deeper market downturn that will last longer before any return to growth.