Bitcoin (BTC) Price Analysis 25 March
The price of Bitcoin (BTC) has dropped significantly during the current session, falling over 1% after failing to break through $90,000. At the now, the main cryptocurrency is trading at about $86,883. Because of its strong correlation with the Nasdaq, a Standard Chartered analyst believes that traders would be better served treating Bitcoin as a tech stock rather than a hedge against volatility and inflation.
By substituting Bitcoin for Tesla in a fictitious “Mag7B” index—a variation on the “Magnificent 7” index—the analyst tested his theory. The tech behemoths Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla are referred to as the Magnificent 7. The flagship cryptocurrency’s market capitalization ranks sixth in the category when Bitcoin is included.
After failing to recover $90,000, Bitcoin has been declining during the current session. According to CoinGlass statistics, open interest in Bitcoin futures contracts increased by 10% in a single day, indicating that traders are also less pessimistic. Open futures contracts total more than $57 billion. Earlier this month, the amount had fallen below $45 billion. The expert claims that Bitcoin would have outperformed the index by 5% in 2017 if it had been converted into the Mag7 Index. Furthermore, there would have been fewer price swings for traders who converted Bitcoin to TSLA during the previous seven years.
“Perhaps more important than returns is Mag 7B’s lower volatility relative to Mag 7 every year. Over the full period, average annualized volatility is almost 2% lower for Mag 7B than for Mag 7.”
Among Bitcoin investors, stock correlations have been a contentious issue. Bitcoin seemed to separate from gold and stocks in late 2024, beating all other asset classes.
“Furthermore, during the period since President Trump’s inauguration on January 20, BTC has traded like most of the Mag 7 stocks. If we compare price declines against [volume] levels over this period, BTC trades in a similar vol-adjusted fashion to NVDA, while TSLA trades a lot like ETH.”
After climbing nearly 4% to surpass the 200-day SMA and hit an intraday high of $85,363 before closing at $84,002, Bitcoin began the previous weekend on a positive note. On Saturday, buyers maintained their hold on the market as the price increased slightly to $84,398. But on Sunday, Bitcoin lost steam, falling more than 2% and falling below the 200-day SMA before leveling off at $82,611.
On Monday, buyers went back to the market, and Bitcoin increased by about 2% to settle at $84,016. Tuesday saw an increase in selling pressure as Bitcoin dropped 1.54% to an intraday low of $81,187 before leveling off at $82,725. Following the FOMC meeting on Wednesday, markets saw a surge. Consequently, Bitcoin had a 5% increase, above both the 20- and 200-day SMAs, and ultimately reaching $86,875.
But on Thursday, the rise stalled, and Bitcoin fell more than 3%, closing below the 20 and 200-day SMAs and landing at $84,215. On Friday and Saturday, there was no movement in the price of Bitcoin, which saw slight drops to $83,822. On Sunday, though, attitude shifted as Bitcoin surged, climbing nearly 3% to surpass the moving averages and close at $86,116. As Bitcoin aimed for $90,000 on Monday, bullish enthusiasm remained.
The flagship cryptocurrency had a nearly 2% gain, peaking at $88,824 during the day and then settling at $87,523. As sellers sought to cut the price, Bitcoin fell by almost 1% during the current session. Bitcoin might recover $90,000 if buyers can regain control.
If buyers can retake control, BTC could reclaim $90,000. However, if sellers continue to exert control, BTC could slip below $85,000 or lower.
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