Key Points
- BTC price rebounded today, following a drop to $76,800 earlier.
- BTC’s price drop was triggered by crypto liquidations and fears around Trump’s recession statements.
Today, Bitcoin’s price recorded a reversal upwards, hitting prices above $81,000, following an earlier dip to $76,000 levels. The BTC price decline was triggered by multiple factors including liquidations, BTC ETF outflows, and statements made by the US President, Donald Trump, about a potential upcoming recession in the US.
However, the crypto industry maintains optimism amidst increasing global adoption and the implementation of clearer crypto regulations in the US and abroad.
Bitcoin is Trading Above $81,000
At the moment of writing this article, BTC is trading above $81,000, after an earlier price drop to $76,800.
BTC debuted a price decline from $83,000 levels on March 10, triggered by liquidations, US BTC ETFs outflows, concerns about Trump’s recession statements, and fears regarding the inflation and interest rate cuts by the US Fed.
Bitcoin Price Decline Factors
In the past 24 hours, the markets recorded almost $950 million in liquidations, $734 million in long positions, and $214 million in shorts. BTC saw almost $319 million in liquidations in 24 hours with over $8 million recorded in the last 4 hours, according to Coinglass data.
Also, the US BTC ETFs continued their outflow streak with March 10 being the sixth day of outflows at over $278 million. Outflows from the crypto products debuted on March 3 when the BTC ETFs recorded over $74 million in outflows, according to data from SoSoValue.
Bitcoin’s price decline was also triggered by Trump’s recession-related statements during a Fox News interview recently, a factor analyzed by The Kobeissi Letter as well.
The team noted that both the traditional and crypto markets reacted to Trump’s “willingness to weather an economic downturn to fix the issues the US faces.”
The markets are also weighing on the possibility of the lack of new interest rate cuts in the US, according to the CME Group data. The next Fed meeting is scheduled for March 19.
Despite recent fears, there are plenty of ongoing developments supporting the crypto ecosystem.
Optimism Still Present in the Market
However, Bitcoin remains surrounded by optimism pushing its price higher, amidst increased adoption in the US and abroad.
Recently, Trump signed an Executive Order regarding a Bitcoin Reserve and a Crypto Stockpile, while the US banks are allowed to offer BTC and crypto services, as confirmed by the OCC.
Also, Bitcoin and crypto adoption is intensifying in Europe as well, with Spanish bank BBVA recently announcing approval to offer BTC and ETH services, while Clearstream also revealed plans to offer crypto services to 2,500 institutional clients.
Yesterday, Strategy₿ announced a new program to acquire more Bitcoin, while Coinbse plans to launch the first 24/7 BTC and ETH futures contracts in the US, offering traders in the region more crypto opportunities.
