Bitcoin (BTC) prices plummeted from $ 93,700 to $ 89,250 within an hour on March 3, deleting half of the previous day’s profit. As the S & P 500 index futures fell 1% following the announcement of retaliation for additional 10% import tariffs in the United States, panic was likely to be reduced among merchants.
Despite selling, it is still strong to find Bitcoin’s $ 90,000 support. On March 2, US President Donald Trump said Bitcoin and ETH would be the main components of strategic digital assets. Trump also suggested that more details will be released at the first government encryption summit on March 7.
Bitcoin/USD (left, orange) vs. S & P 500 gift (right). Source: TradingView/COINTELEGRAPH
On March 3, the main driver of Bitcoin’s price drop was excessive expectation by Trump’s weekend posts. Investors quickly realized bureaucratic obstacles, including long approval procedures and the need for parliamentary approval. In addition, there is a question of whether the plan is related to the actual purchase of these cryptocurrencies.
source: Metalawman
Aurelie Barthere, a major research analyst of Blockchain Analytics Firm Nansen, expects Bitcoin’s rally to $ 94,500 during the weekend. On February 28, a 21% surge of $ 78,300 seems to be exaggerated by some market participants, especially in consideration of the World Customs War and extensive macroeconomic uncertainty.
China’s tariff retaliation can harm the US economy. Encryption preliminary funds are still uncertain
China has vowed to retaliate for Trump’s 10% tariffs with the goal of exporting the US, including important minerals such as soybeans and rare earths. According to economists, this measure can increase food and technology costs, interfere with supply chains, and reduce rural income, and potentially reduce US GDPs by 0.3% to 1.3%. Anthony Scaramucci, a hedge fund manager, warned that investors should reduce economic pain if they are getting higher.
James “Metalawman” MURPHY, a lawyer who specializes in encryption laws and business issues, pointed out X that Congress is unlikely to quickly approve strategic digital asset protection zones. Perhaps initial approval is related to pause of government cryptographic assets. This is a measure that affects the price.
Another source of concern for Bitcoin Traders was from the March 2 announcement of Michael Saylor’s announcement that it did not increase new shares last week or increased its stake in BTC to more than 499,096. Despite the pre -signs, some traders anticipated that the company would “buy”.
source: Runnerxbt
Crypto TRADER and analyst Runnerxbt expressed frustration of the strategy of purchasing $ 2 billion worth of Bitcoin at an average price near $ 97,500, but maintained inactive when BTC dropped to $ 80,000. His analysis also suggested that the purchase of bitcoin purchases of more than $ 95,000 could be pure pure in the market.
relevant: MSTR stocks are 15% pop after Bitcoin weekend rally
Despite the deterioration of investors in the global economy, Bitcoin is likely to continue to support $ 90,000 because Bitcoin is expected to continue to accumulate BTC through $ 42 billion debt and stock issuance plans. Michael Saylor did not show the intention of spending time on the market when adding to the company’s Bitcoin Holdings and offers additional purchases regardless of the price level.
Timelines are uncertain about expectations surrounding strategic cryptocurrency reserves, but long -term impacts on bitcoin prices may be positive. BTCs are designed to flourish in an environment where investors recognize excessive stock market evaluation or potential real estate correction. Considering these conditions, Bitcoin is still more likely to stand over $ 95,000 in the near future.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.