How Will March Go in Bitcoin? Analyst Said "The Worst is Behind Us", Shared Expectations

According to some analysts, with signs of improvement in macroeconomic conditions, the cryptocurrency market is expected to recover in March. Bitcoin prices experienced a recovery with the recent release of Personal Consumption Expenditures (PCE) data, fueling optimism that the broader economic environment will lighten next month.

Julien Bittel, the macro research director at Global Macro Investor, highlighted the role of financial conditions in shaping market trends: “When financial conditions tighten, liquidity decreases and economic surprises begin to slow down. However, the panic affecting the market will not last long. A reversal is likely to occur next month.”

Over the past two months, key financial indicators have shifted in favor of risky assets. The US dollar weakened, bond yields fell, and oil prices declined; all of which set the stage for a potential recovery in the cryptocurrency market. Bittel suggested that financial conditions are a leading indicator and that the worst may already be priced in.

Bittel said, “There is a lot of noise in the market right now, with conflicting news everywhere,” and added, “Everything happening in crypto is due to the financial tightening in the fourth quarter of 2024. This has led to concerns about liquidity shortages and a potential recession. However, financial conditions are rapidly easing and should soon translate into better economic data.”

According to Bittel, Bitcoin, which recently dropped to around $80,000, appears to have fully absorbed the impact of financial tightening. Although further downside risk is possible, sensitivity is already in a very downward trend due to Bitcoin’s Relative Strength Index (RSI) at 23, the most oversold level since August 2023.