- Bitcoin saw its worst weekly decline since the FTX collapse in November 2022.
- Investors panicked after Strategy sold a small part of its Bitcoin holdings last week.
- Breaking below the 200-week MA puts Bitcoin in a critical zone of bearish pressure.
Bitcoin recorded its steepest weekly decline since the FTX collapse last week. According to analysts, the forces behind BTC’s current trend are relatively less severe but still signal a potential red flag; most of whom believe the rebound seen this week could be short-lived as structural frailties are exposed.
Indicators Point Toward a Bitcoin Winter
Focusing on the crypto market’s current trend and prevailing fundamentals, the Bloomberg report highlighted the potential for further Bitcoin price drop. For instance, on-chain data reveals that investors are fleeing ETFs amid weakened technical indicators. From a macro perspective, interest rate expectations have shifted, suggesting the worst may be yet to come for Bitcoin, despite the current crypto winter being milder than previous editions.
Primal Fund co-founder Griffin Ardern believes the bear trend will continue. According to Ardern, Bitcoin is still some way off a proper bottom. His projection comes after Bitcoin staged a rebound, recovering from a 19% weekly pullback, its steepest weekly decline since dropping by 23% after FTX declared bankruptcy in November 2022.
The latest decline pushed Bitcoin to its lowest level since October 2024, with the cryptocurrency dropping to $59,100, according to TradingView’s data. It reflected a decline of over 50% from last year’s record high of $126,272.
Strategy’s Selloff Affected Investors’ Confidence
Multiple reports attributed last week’s Bitcoin selloff to Strategy divesting a small portion of its holdings. The move sent shock waves among investors, most of whom relied on the asset manager’s dominant narrative that it would never sell Bitcoin. Meanwhile, the firm returned on Monday to announce a fresh purchase of 1,550 Bitcoins for $101 million, a volume much higher than the 32 BTC it sold last week for $2.5 million.
Despite Strategy’s latest report, market confidence remains far from full restoration. Many traders, particularly retailers, may have been knocked out of their leveraged positions, resulting in significant irrecoverable losses.
Notably, last week’s slip pushed Bitcoin below the crucial 200-week moving average, a closely watched metric that many traders use as a gauge of market support. Typically, a confirmed break below this level would suggest further downward movement. Adding this to prevailing macroeconomic developments suggests a bleak future for Bitcoin unless something drastic happens to flip the narrative from bearish to bullish trend.
Related: Bitcoin Faces Key $64K–$66K Resistance as $52K Support Comes Into Focus
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
