Key Points
- Institutional trading increasingly influences Bitcoin’s price movements.
- Concerns over Trump’s proposed tariffs and regulatory delays could lead to a drop in Bitcoin’s price.
In a recent report by Matrixport, a Singapore-based blockchain firm, it was suggested that institutional trading, particularly from Wall Street, is having an increasingly significant impact on the price movements of Bitcoin (BTC). Bitcoin continues to dominate the market with a 60% share, serving as the primary benchmark for cryptocurrency traders.
Potential Impact of Tariffs and Regulatory Delays
However, Matrixport also highlighted potential concerns that could negatively affect Bitcoin’s price. These include the proposed tariffs by Trump and possible six-month delay in the Bitcoin Strategic Reserve consultation. These factors may contribute to a “technical topping formation”, which could see Bitcoin’s price drop to its next support level at $73,000.
At the time of the report, Bitcoin was trading at $88,290. It was previously reported that Bitcoin’s price briefly fell to $86,099, resulting in a $1.06 billion loss across the cryptocurrency market. Long positions suffered the most, with losses amounting to $873 million.
Market Reaction
Data from CoinGlass revealed that over 220,000 traders were liquidated as prices fell, and open interest decreased by 5%. This suggests that traders are becoming more cautious. Meanwhile, exchange inflows saw a 14.2% increase, possibly indicating panic selling among traders.
Bitcoin’s price drop also affected exchange-traded funds (ETFs), with $1.1 billion being withdrawn over a five-day period, including $516 million on February 24 alone. The downturn also impacted crypto stocks, with Coinbase (COIN) declining by 6.4%, Robinhood (HOOD) by 8%, and Bitcoin miners Bitdeer (BTDR) and Marathon Digital (MARA) by 29% and 9%, respectively.