Since falling below $40K on Saturday, March 5, Bitcoin (BTC) is still fighting to recover this level as macro-economic factors and rising geopolitical tensions are piling up on the market.
According to data by CoinMarketCap, after trading above $40K since February 28, Bitcoin (BTC) again fell below $40K on Saturday, March 5, as macro factors push the global financial system in a downtrend.
According to financial experts, global equity market is under pressure due to Russia-Ukraine crisis resulting in a pull back of already shaky crypto markets.
Bitcoin (BTC) Fights to Recover $40K
According to CoinMarketCap’s data, Bitcoin (BTC) closed Saturday, March 5th, at $39,400. On Sunday, March 6th, BTC/USD pair remained stable between $38,000 and $39,000, with some attempts to touch back $40K. However, the price remained below $40,000 with no meaningful price action. BTC went as high as $39,640 on Sunday.
In early hours on Monday, March 7th, in Asia, BTC price has further pulled back from $39,000. As of writing, BTC/USD pair is 4.52% down in the last 24-hours to exchange hands at around $37,700. The largest cryptocurrency by market cap was last seen at these levels on February 28th.
The altcoin market is also under pressure, losing all the gains that it gained since the start of the Russia-Ukraine crises. Ethereum’s Ether (ETH) price has dropped 4% in the last 24-hours to find a support around $25,000.
Terra (LUNA) has posted the biggest lose among top 10 assets that is 6.38% down over the last day to trade below $80k at the time writing.
According to financial and market experts, this downtrend in crypto market is following the global market wobble. Reports say that Global equities have lost $2.9 trillion in market cap last week. Holger Zschaepitz, a market commentator, on Sunday, tweeted:
Global equities have lost $2.9tn in mkt cap this week as war could trigger major stagflationary shock. Economists cut their growth forecasts & raise inflation projections. Global stock mkts now worth $110tn, equal to 130% of global GDP, which looks expensive for current situation pic.twitter.com/iIgcW5MIUU
— Holger Zschaepitz (@Schuldensuehner) March 6, 2022
“Global equities have lost $2.9tn in mkt cap this week as war could trigger major stagflationary shock. Economists cut their growth forecasts & raise inflation projections. Global stock mkts now worth $110tn, equal to 130% of global GDP, which looks expensive for current situation.”
Amid the crises, some are even expecting a worldwide meltdown and as a result, more bad luck for the crypto market.
The most exciting thing this year. Will be global markets collapsing. Any market that trades above 0 will be too high. They will call this. “The greater depression” which will be 10x worse than the Great Depression.
— Pentoshi 🐧 (@Pentosh1) March 6, 2022
However, not everyone is predicting bad times. In its latest crypto market outlook report on March 4, Bloomberg Intelligence remained bullish on Bitcoin and Ether (ETH). The report reads:
#Bitcoin $40,000 or #Nasdaq 14,000? Digital #Gold Set to Prevail – Bitcoin faces deflationary forces after 2021 excesses, but the crypto shows divergent strength. With 2002 losses less than half those for the Nasdaq 100, Bitcoin may be maturing toward global digital collateral pic.twitter.com/Yt8Q5q5qjt
— Mike McGlone (@mikemcglone11) March 4, 2022
“Bitcoin May Be Beneficiary in Standoff Between Bonds and Crude. The Russia-Ukraine conflict may mark another step in Bitcoin’s maturation toward becoming the global digital collateral.”
According to Bloomberg, Bitcoin may face initial pressure and revisit $30K if things move to worse, but ultimately, the coin and the crypto market will come out ahead.