Matrixport predicts bitcoin’s collapse to $ 73,000

On the night of February 27, the price of bitcoin BTC $96,176.36 Bitcoin -1.35% Market capitalization $1.91 trillion VOL. 24 hours $0.99 billion plummeted to $ 82,000, triggering massive liquidations of positions in the cryptocurrency market. The total volume of losses in 24 hours exceeded $ 770 million, with traders holding long positions taking the brunt of the fall. Later, bitcoin recovered somewhat, exceeding $ 86,000, but the market remained unstable.

The reason for the drop could be political events in the United States. President Donald Trump announced his intention to impose new duties on imports from Canada, Mexico, and the European Union. This provoked increased uncertainty in the financial markets, which also affected the cryptocurrency sector.

In total, almost 188,000 traders' positions were liquidated. Bitcoin and Ethereum accounted for most of the losses ETH $1,825.01 Bridged Ether (StarkGate) -1.50% Market capitalization $0.16 billion VOL. 24 hours $0.39 billion - in pairs with these assets, investors closed positions worth $ 469 million and $ 127 million, respectively. The dominance of bitcoin in the market has slightly decreased, at some points it dropped to 60.2%.

The Fear and Greed Index reached its lowest level of only 10 points, indicating panic among investors. The last time such a level was observed was in June 2022 during the next bear market.

Matrixport analysts suggest that bitcoin could fall to the next support level of $ 73,000 if market sentiment does not improve. However, supporters of the long-term growth of cryptocurrencies believe that these fluctuations are natural and do not affect the overall trend of digital assets.