Crypto Market Downturn: Bitcoin Price Drop to Lose 5% by March End
4. March 2023
• Bitcoin suffered a bearish trend and experts predict another 5% loss by the end of March.
• Investors on Coinmarketcap’s Price Estimates feature expect a median price of $21,084 at the end of March, representing a 5.67% decline from current prices.
• Crypto Fear & Greed Index suggests investors are still feeling neutral about the market, but sentiment could turn negative if prices continue to drop.
Bitcoin Price Drop Causes Market Downturn
The crypto market is still reeling from Bitcoin’s price drop on Saturday. The largest cryptocurrency by market cap took the majority of the market down with it after succumbing to bearish trends. But it seems that this is not the end as investors expect the digital asset to continue its decline.
March Expected To See More Losses
March is still in its early days but it has already started out with bad news for the market. This is in line with the bearish sentiment expressed by participants in the space on Coinmarketcap’s Price Estimates feature. The product collects votes from community members regarding where they see the price of a digital asset going forward, giving out a median and an average expected price. For bitcoin, it is incredibly bearish seeing as investors expect more downtrend. With over 11,000 votes collected for the month of March, expectations have turned negative for BTC. The median price expectation by the end of March came out to $21,084, which represents a 5.67% decline from current prices. If this prediction were to come to pass, it would mean that bitcoin would have to lose another $1,200 from its value, plunging the crypto market further into the bear.
Investors Turn Bearish Toward Bitcoin
Voters also maintained the same bearish outlook for the price over the next couple of months. With each month, expectations for the digital asset fall lower to as high as 17% losses expected in the next three months. By May’s end, more than 4,400 voters put the price of BTC at a low $18,521 .
Sentiment Could Become Negative If Prices Continue To Fall
According tothe Crypto Fear & Greed Index ,investors are still feeling very neutral when it comes to themarket .Butitis nota longshottosee sentimentturning negative and fearful very quickly ,especiallywiththebitcoinprice crash .The thing aboutneutral sentimentsuchas thisoneis thatitiseasyto influence either side .Sincepricesarelow ,the chancesofa declinein sentiment become higher .This can affectthe priceof bitcoinsignificantly givenitshighvolatility