Bitcoin Price Drops Below $89K; Concerns Over Market Recession Increase

According to CoinDesk, the price of Bitcoin today fell below $89,000, reaching its lowest point in three months. This decline comes amid the strengthening of the Japanese yen and the drop in global market indices, intensifying concerns about a continued risk-off sentiment in the markets.

On Tuesday, March 7, 2025, Bitcoin's price reached $88,500 at the start of the European markets, a level last seen in mid-November 2024. This drop is attributed to the decline in global indices, particularly in the tech sector, and concerns over the economic situation, especially the reduction in global money supply. In the past few hours, the price even dipped below $87,000.

Concerns Over Continued Downtrend in Global Markets

While Nasdaq futures are showing a 0.3% decline, concerns about the ongoing downtrend in this index have grown. Since February 18, the Nasdaq has dropped more than 4%. This situation reflects investor fears of further declines in the stock markets and their growing inclination to invest in safe-haven assets, such as the Japanese yen or gold.

Strengthening of the Japanese Yen and Market Risk Aversion

The Japanese yen (JPY), known as a safe-haven currency, has risen to 149.38 against the US dollar and may break its three-month record. Over the past six weeks, the yen has gained about 6%, largely driven by expectations of an interest rate hike by the Bank of Japan. This strengthening mirrors a similar period in July, when the Bank of Japan's rate hike led to a sharp decline in Bitcoin's price.

Bitcoin Technical Analysis: Analyzing the Downtrend and Price Forecast in the Crypto Market

Bitcoin Price Trend Analysis by Trendo Experts

Bitcoin Price Trend Analysis by Trendo Experts Currently, given the sharp decline in Bitcoin's price over the past 24 hours, dropping below $87,000, the market appears to be in a strongly bearish state. The 4-hour candlesticks indicate intense selling pressure and negative momentum, with the price decreasing by nearly 10% within this timeframe. Considering these conditions and the lack of clear signs of a short-term bullish reversal, it is advisable to exercise caution when engaging in buy trades or purchasing Bitcoin and other digital assets on the Trendo trading platform for at least the next two days. This period is a suitable time for caution and reassessing the market situation.