Key Points
- Bitcoin (BTC) dips below $81,000 as the total crypto market capitalization slides to $2.7 trillion.
- CoinW Chief Strategy Officer Nassar Achkar discusses the crypto market climate and potential Bitcoin trajectory.
Bitcoin’s value dropped under $81,000 once more on March 10, causing a 5% decline over the past day. This occurred as part of a larger market downturn, with the total crypto market capitalization falling to $2.7 trillion. Investors in digital assets began liquidating their virtual currencies as a protective measure.
Nassar Achkar’s Market Insights
Nassar Achkar, who serves as the Chief Strategy Officer for the Dubai-based crypto exchange CoinW, shared his insights on various topics. These included the psychological barrier Bitcoin faces at $100,000 and the low likelihood of its value dropping below $70,000.
Achkar observed a new trend in the current crypto market. Instead of buying altcoins, investors are now purchasing Bitcoin. This shift has created a clear divide between Bitcoin and the wider altcoin market.
Market Shifts and Influences
After the incident with Bybit, Binance saw an inflow of nearly $4 billion in a single week, far surpassing other major exchanges. However, this surge seems to be driven more by a risk-off sentiment than a classic buy-the-dip scenario. Large amounts of capital are being consolidated within a single exchange for safety.
Ethereum (ETH) is currently trending downward, and SOL is facing a significant token unlock. This situation has led investors to wait for lower entry points. Despite Bitcoin seeing slight recoveries, the overall market sentiment remains cautious. Investors are choosing to hold onto their assets rather than invest aggressively.
Former U.S. President Trump’s recent pro-crypto stance has bolstered Bitcoin’s dominance. It has drawn more attention and liquidity to Bitcoin instead of altcoins. Traders are waiting for clearer signals before making significant moves. The past three months have seen a steady decline in overall CEX trading volumes. This reflects the market’s prevailing uncertainty and fear.
Market Predictions and Analysis
Predicting price movements is always risky. However, CoinW’s order book suggests that the real tipping point between buyers and sellers is centered around $100,000, not a drop below $70,000. Bitcoin briefly dipped into the $70K range but has since rebounded above $90,000. This reinforces the belief that $100,000 is both a psychological milestone and a strong support level in this cycle. Based on current market performance, a significant drop below $70K is not anticipated in the near term.
CoinW is closely monitoring Trump’s potential impact on the market. Historical trends show that Bitcoin’s price is highly correlated with U.S. stock market movements and the M1 money supply. Therefore, it’s not surprising to see Bitcoin’s price fluctuating in response to U.S. equities losing $3 trillion in value.
Binance recently liquidated its self-held assets, while ETH and SOL are under continued sell pressure. Even funds affiliated with Trump, like WFLI, which previously invested in altcoin portfolios, are currently in a loss. The market is in a period of uncertainty, awaiting key macroeconomic factors such as interest rate adjustments, digital asset reserves, and a potential resurgence of Ethereum.
Reasons for Crypto Market Downturn
Bitcoin is increasingly separating from the broader crypto market, making the traditional four-year cycle theory ineffective. Instead, Bitcoin’s price action is now more closely tied to the U.S. dollar, equity markets, and ETF flows.
If Bitcoin is still considered a crypto asset, then the broader crypto market’s weakness can be attributed to macro policy uncertainty. However, when Bitcoin is analyzed separately from altcoins, a different picture emerges. The altcoin market, led by ETH, lacks a strong narrative or buy momentum. ZK, Layer-2, and VC-backed tokens are no longer favored by the market.
Alternative chains like Solana (SOL) have been highly speculative, primarily driven by meme coins. Liquidity dried up completely after Trump’s token launch, leaving altcoins without a strong support base. The combination of external macroeconomic pressures, Bitcoin’s separation from altcoins, high ETH costs, and meme coins draining liquidity may be the real reason behind the crypto market’s current downturn.
