The cryptocurrencies March closed with strong falls of up to 37%. However, for the main market, the balance was not so negative. Despite the great volatility that investors in the US in suspense, Bitcoin achieved a lower fall compared to the 20 main altcoins. Besides, He had a better resistance compared to Ethereum, his main competitor, which registered a loss of more than 18%.
How the main cryptocurrencies closed the month:
A difficult context for cryptocurrencies
These falls occurred after the US stock market dismissed the week with outstanding losses, very influenced by the latest macroeconomic data and for the US tariff war. First, the data of the Personal Consumer Price Index, the so -called PCE index, remained stable at 2.5% in January, matching the forecasts of the analyst consensus. For its part, the underlying rate, which excludes food and energy, accelerated a tenth more than expected, to 2.8%.
This indicator is Federal Reserve Favor (Fed) to guide monetary policyso this horny surprise It could further complicate interest rates in the coming months.
It should be remembered that the American central bank RHe evisted his inflation forecasts, while reduced its growth estimates, probably due to aggressive Trump’s commercial policies. Likewise, the GDPnow model of the Atlanta Federal Reserve now projects that the US economy will contract 2.8% in the first quarter, or 0.5% if it fits from imports and exports of gold, which has fueled the fears of a stanflation and an eventual economic recession.
Meanwhile, markets continue to value What impact will the tariffs of President Donald Trump have In developed economies. In recent months, Wall Street rates have fallen with desire, pressing down to risk assets such as cryptocurrencies, given the aforementioned fears to an economic crisis in the country. In this sense, this last Sunday Trump announced tariffs to Russia if the country does not reach a peace agreement with Ukraine.
“The feeling of the market, a reflection of this duality, combines the strength of the labor market with the distrust of the erratic actions of the government, which has led to a revaluation of gold and an exodus of capital towards international markets and assets that are perceived as safer. Investors, aware of the fragility that implies depending solely on the dollar and the internal environment, are betting on strategies that diversify their portfolio They protect against volatility, “explains Javier Molina, senior market analyst in Etoro.
What can happen to the price of Bitcoin
As mentioned in the latest report of BUENBITBitcoin is still in a critical moment and consolidates between support and resistance levels that could define the market management in the next few days. Currently, we see the support at US $ 86,190 that maintains the upward structure, and maintains the possibility of an impulsive movement towards US $ 91,000.
“However, the asset does not yet show enough strength to break the resistances in US $ 87,500 YU $ S88.580, key points to validate the continuity of the upward trend. If the BTC manages to overcome this area, space will open for a more significant advancedriven by the technical structure of a possible third wave of Elliot. However, if the support at US $ 86,190 is lost, the market will enter a risk zone, and a fall below US $83,200 would invalidate the recovery attempt, which could lead to a more pronounced correction, ”says the broker report.
And he adds that, in the short term, the feeling of the market is uncertain, while investors closely analyze the dynamics of ruptures. “From goodbit we consider that the lack of a relevant macroeconomic catalyst could be the seasoning of this indecisionwhile the institutional flow still does not show an aggressive entry. This leads us to conclude that the scenario is open in both directions: above US $ 87,500, the bullish bias is strengthened, while below US $ 86,190, the risk of a retraction would increase strongly, ”he concludes.
How do ETFs come?
Despite these falls, Bitcoin’s listed funds (ETFs) Investments continue to attract, with net tickets of US $ 196 million last week. In contrast, ETFS of Ethereum experienced a net loss of US $ 8 million.
Source: Ambito
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