Will Crypto Prices Rebound or Crash Further?
After a significant gain, the cryptocurrency market experienced a significant decline and created uncertainty in February. The market crash has caused investors to lose billions of dollars, leaving many, especially after a sharp collapse last week, which some analysts call “Trump-down”. Still, activity by major investors or “whale” increased the market’s decline, indicating a potential recovery as March approaches.
Investors are ready to make a comeback after Trump-Bump
The market crash in February was mainly triggered by a proposal by Donald Trump to impose a 25% tariff on the EU and a $1.5 billion hacker attack on Bybit Exchange. These events led to massive liquidation, plunging Bitcoin to a three-month low below $80,000.
Arthur Hayes, former CEO of BITMEX and now chief investment officer at Maelstrom, earlier predicted that after the Trump administration began, he would call it a “Trump dump” which he called.
He predicts that challenges in implementing Trump’s pro-Cretto policies, such as building Bitcoin reserves and building a crypto-friendly atmosphere, will become obvious to investors.
Hayes expects the market to decline, known as the “Trump dump,” to end in March, resulting in recovery. It is worth noting that despite the decline in Bitcoin prices, several institutions, including MicroStrategy, continue to buy Bitcoin, viewing lower prices as opportunities to accumulate at discounted prices.
Please read also: Bitcoin price forecasts for March and April 2025: More volatility in the future?
Furthermore, despite the recent decline in the value of Bitcoin, Kiyosaki is still bullish on its long-term potential, contrary to what he calls “fake money”, which it calls “money with integrity.” He expressed his enthusiasm at the lows of the market, saying, “When Bitcoin collapsed, I smiled and bought more.”
March has been optimistic since 2021
According to Coinglass, historically, March has seen a positive trend in the cryptocurrency market, with Bitcoin and Ethereum making an average of nearly 17% in the past four years.
However, the outlook for this year is likely to change due to increased inflation and enhanced DXY. The market has already felt the impact of large volume outflows of ETFs, and the continued outflow in March may push the market to new lows.
From a positive point of view, the recently released personal consumption expenditure (PCE) data dropped to 2.6%, bringing hope to the market. Now, the focus is shifting to the upcoming non-agricultural wage (NFP) report, with economists expecting to drop to 133,000 in February from 143K in January, a vote from Reuters, while the unemployment rate is expected to remain at 4.0%.
Moving forward, the release of CPI data on March 12 is crucial. Any bearish outcome may reduce the chances of a market rebound. In this case, according to broader macroeconomic news, the price of Bitcoin could merge between $70K and $90k throughout March. This can seriously affect altcoins, determining whether they will drop to new lows, merge or reach new highs.
