Here’s why Bitcoin price correction could last until April

The Bitcoin price should remain under pressure until April, analysts warning a stronger US dollar and the changing market dynamics influencing its trajectory.

Bitcoin (BTC) The price can remain under correction until April, according to a new matrixport analysiswhich attaches the decline to global liquidity and macro-factors, including stronger American pressure on cryptocurrency.

Place Bitcoin negotiated funds have seen massive entries, reaching $ 39 billion in just 14 months. However, as Wall Street adopted Bitcoin, the largest cryptocurrency by market capitalization has become more linked to traditional financial factors, according to analysts.

“A stronger US dollar leads to a drop in this liquidity measure, which suggests downward pressure on Bitcoin prices. Global liquidity culminated at the end of December 2024, led by an increasing US dollar, provides a clear explanation for the continuous Bitcoin correction. »»

Matrixport.

Bitcoin being increasingly linked to traditional finances, analysts now expect the slowdown in prices to last until less in March or April. After the correction, Bitcoin was able to try to bounce back to the previous summits, they add.

Matrixport also notes the growing role of Wall Street investors. While wealth and asset managers see Bitcoin as a long -term investment, hedge funds use arbitration strategies to take advantage of Bitcoin volatility. According to Matrixport, these hedge funds “have collectively $ 10 billion in the Bitcoin ETF, and with total entries reaching $ 39 billion, this suggests that at least 25% of Bitcoin ETF capital is linked to arbitration transactions.”