Smart Crypto Investing: Bitcoin, Altcoins & Trading Strategies podcast.
Hey there, fellow crypto enthusiasts It's your buddy Crypto Willy here, and I'm excited to share the latest updates and insights on smart crypto investing. Let's dive right in!
This week has been quite eventful, with Bitcoin facing strong selling pressure after Donald Trump announced the imposition of tariffs on Mexico and Canada starting in March. This led to an 8% market decline, pushing Bitcoin below the $92,000 level. Many crypto analysts, including Rania Gule from XS.com in Dubai, think the decline stems from investor concerns about the impact of tariffs on global trade.
Bitcoin ETFs saw outflows of $571 million last week, reflecting declining investor confidence, particularly amid growing regulatory and macroeconomic pressures. The uncertainty prompted many crypto investors to reduce their risks across the board, leading to liquidations exceeding $1 billion in the futures market.
But don't worry, folks Despite this downward trend, Bitcoin is still maintaining its long-term bullish structure. Sustained downward pressure could lead to an extended sideways consolidation phase, similar to what happened in March 2024, potentially setting the stage for a market rebalance before resuming the upward trend.
Now, let's talk about altcoins. The altcoin market has faced significant challenges, with the traditional Bitcoin-to-altcoins rotation mechanism showing signs of disruption. Cas Abbé, a noted crypto analyst, highlighted the delay in the anticipated altcoin season, suggesting a shift in market dynamics. Bitcoin's price decline has led to a ripple effect across the altcoin market, with Ethereum dropping 5.8% and trading volumes for major altcoins like Cardano and Solana decreasing by 20% and 15%, respectively.
The Relative Strength Index (RSI) for Bitcoin stood at 35 on February 23, 2025, indicating that it is in an oversold condition, which could signal a potential rebound. For altcoins, the RSI for Ethereum was at 40, suggesting a similar scenario. However, the correlation between Bitcoin and altcoins has weakened, with the correlation coefficient dropping from 0.85 to 0.75 over the past month, indicating that altcoins are less influenced by Bitcoin's movements.
In other news, MicroStrategy, formerly known as "Strategy," continues to buy large amounts of Bitcoin, recently adding nearly $2 billion worth to its holdings in a massive purchase. This investment strategy reflects the company's long-term commitment to Bitcoin as a hedge against inflation and economic crises.
Lastly, some market analysts, like Geoffrey Kendrick from Standard Chartered, warn that Bitcoin may not have bottomed yet and that a move to the "low 80s" is likely. BitMEX co-founder Arthur Hayes even predicted that Bitcoin could fall to as low as $70,000.
That's all for now, folks Remember to stay informed and adapt your trading strategies accordingly. Keep an eye on those ETF flows and on-chain metrics, and don't be afraid to diversify your portfolio. Happy trading, and I'll catch you all in the next update!
Cheers,
Crypto Willy
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