Bitcoin (BTC) Correction Could Extend Until March or April, Matrixport Report Shows

Bitcoin’s correction could extend until March or April, according to a recent report from Matrixport.

Bitcoin's price correction could continue until March or April due to several macroeconomic headwinds, including central bank monetary policies and the strength of the US dollar, according to a recent analysis by crypto research firm Matrixport.

What Happened: Macro concerns have been impacting the crypto market, especially in the past week as Bitcoin fell below the $80,000 mark amid a broader market downturn due to global trade tensions and a rise in market volatility.

Three main US stock market indexes also recorded significant losses. The Nasdaq 100 (NDX) dropped 7.05% over the past five days, the S&P 500 Index (SP500) fell by 1.33%, and the Dow Jones Industrial Average (DJIA) saw a decrease of 1.04%.

Top trends also included the US Dollar Index (DXY) approaching the level of 107.40 for the third consecutive day of gains. The dollar is viewed as a safe-haven asset during times of economic uncertainty, which could be affecting crypto prices.

Lower liquidity in the markets is also a factor driving the dollar's strength, and it is expected to exert downward pressure on Bitcoin prices, as noted by Matrixport.

The dollar's strength is also linked to US economic policies, such as the recent confirmation from President Donald Trump regarding the increase in tariffs, which is further supporting the dollar's trend.

According to Matrixport's analysis, global liquidity reached a peak in December 2024, but it is now decreasing, which could indicate that Bitcoin's correction could continue until global markets adjust to this new economic reality.

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What Is In It For Investors: Despite the correction in Bitcoin prices, investors are displaying strong bullish sentiment.

According to data from Santiment, mentions of "buying the dip" on social media have reached their highest level since July 2024. This behavior suggests that traders are viewing this correction as an opportunity to accumulate more Bitcoin at lower prices.

Experts like Charles Edwards, founder of Capriole Investment, are also noticing signs of a potential short-term bottom in the market. Edwards points out the high level of fear on the Fear & Greed Index, current liquidations, and traders' behavior as indicators.

Ki Young Ju, CEO of CryptoQuant, adds that, contrary to popular opinion, Bitcoin's bull cycle is not over yet. However, Ju cautions that if the price of Bitcoin drops below $75,000, it could signal a change in the current bull cycle.