The current bitcoin pullback is expected to last until March or April before an attempt is made to rally to previous highs, according to Matrixport.
? #MatrixOnTarget Report — Feb 28 2025
Bitcoin Selling:
Hedge Funds, Not Wall Street, Driving the Unwind#Matrixport #BTC #Crypto #CryptoFinance #CryptoMarketOverview #CryptoInvestors #WallStreet pic.twitter.com/MZg6BRlSsE— Matrixport Official (@Matrixport_EN) February 28, 2025
Experts noted the strengthening of the USD amid threats from the US President to impose tariffs against foreign trade partners, which reduces liquidity and pressures risk assets.
They believe that with the growing popularity of trading digital gold by TradFi investors through BTC-ETFs, macroeconomic factors have become more significant for the pricing of the leading cryptocurrency.
According to research by 10x Research, a large portion of ETF volumes (56%) is related to arbitrage. Traders profit from the difference between spot and futures prices.
In the current conditions, funding rates and base spreads are too low to justify holding positions and opening new ones, experts noted.
In February, former BitMEX CEO Arthur Hayes suggested that the price of the leading cryptocurrency could drop to $70,000 due to outflows from exchange-traded funds.
Standard Chartered forecasted continued outflows from BTC-ETFs.
According to Ryan Lee, chief analyst at Bitget Research, in a conversation with Cointelegraph, macroeconomic issues could lead to a correction down to $76,000-$78,000.
“A drop to $70,000 is possible, but less likely before March 2 [the US imposes tariffs on goods from Canada and Mexico] without a new significant shock. The $75,000 level corresponds to technical support and stablecoin buffers. For $70,000, sustained panic or a worsening macroeconomic situation beyond current pressures would be required,” commented the specialist.
Trader and analyst Rekt Capital predicted a continuation of the pullback over the next two weeks. The expert referred to historical analogies.
Bitcoin is in its first Price Discovery Correction
Here is a look at historical first Price Discovery Corrections:
2013: -75% in 13 weeks
2017: -34% in 3 weeks
2021: -31% in 4 weeks
2025: -25% in 11 weeks thus far
Depth-wise, this current -25% Price Discovery…
— Rekt Capital (@rektcapital) February 27, 2025
Recently, the cryptocurrency fear and greed index fell to a low of 10 points, the lowest since June 2022, indicating extreme panic.
Earlier, CryptoQuant CEO Ki Young Ju predicted a prolonged consolidation within a wide range (e.g., $75,000-100,000), as observed in early 2024 before prices returned to an upward trajectory.