[Blockchain Today Correspondent Soyeon Kim] As the first week of March closes, on the 6th (US time), Bitcoin showed a decline as more focussed on the macro-weakness associated with geopolitical tensions in Russia and Ukraine, Cointelegraph reported.
Bitcoin (BTC/USD) against the U.S. dollar (BTC/USD) hit a weekly low on Sunday and is down about 12% over the past three days, according to data from Cointelegraph Markets Pro and TradingView.
Experts also say that the outlook for the global economy is changing day by day due to the rapidly changing situation, but Bitcoin showed a ‘clear downtrend’ over the weekend despite being ‘out-of-hours trading’, the media reported.
German economist and market analyst at Welt, Holger Zschaepitz, warned that “global stock markets have lost $2.9 trillion this week as the war predicts a major stagflation shock.” “Economists are lowering their growth forecasts and raising their inflation forecasts. The global stock market is worth $110 trillion, or 130% of global GDP, and it still looks expensive considering the current situation.”
There are experts who argue that if the traditional financial market (TradFi) starts a bigger correction, it will adversely affect the already unstable cryptocurrency market.
“Anything that trades above zero would be too expensive,” said popular trader and analyst Pentoshi. will,” he claimed.
On the other hand, some institutions, such as Bloomberg, are relatively optimistic.
On the 4th, Bloomberg Intelligence released its cryptocurrency market outlook report, revealing that it maintains a positive stance on Bitcoin and Ethereum. “Most assets will be hit by the highest inflation in 40 years this year,” Bloomberg wrote in the report, but it could be another milestone year for Bitcoin. “If risk assets do not decrease by reducing price pressure, inflation can gain momentum and the central bank will have no choice but to raise interest rates aggressively,” he continued.
According to Cointelegraph, the market will be dominated by fear in the near term, with Bitcoin showing few bullish signs and going sideways for the time being.
In the latest edition of the newsletter titled “Uncharted,” Bitcoin Co-Founders Yann Allemann and Jan Happel, co-founders of on-chain analytics firm Glassnode, put Bitcoin in a very important position. “Bitcoin’s RSI is oversold and is trending upwards. If the price does not break above $40,000, it will decline to the support level formed between $34,000 and $36,000.”
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