Led by Bitcoin (BTC), altcoins experienced a major decline and the cryptocurrency market turned into a bloodbath.
According to Coinglass data, liquidations exceeding $2 billion occurred in the last 24 hours during this decline, surpassing even the liquidations experienced during the COVID-19 and FTX crises.
While the sharp decline in BTC and altcoins has investors worried, data shows that the risk of Bitcoin falling to $75,000 by the end of March is increasing.
Accordingly, cryptocurrency exchange Derive options data shows that the probability of Bitcoin falling to $75,000 by March 28 has increased.
And according to the data, that probability is now 22%, up from 10% last week.
Derive analysts said that this increase in the probability of Bitcoin falling to $75,000 is linked to the recent tariffs imposed by the US on Canada, Mexico and China, which could increase inflation and weaken sentiment towards the cryptocurrency market.
“Trump's recent tariffs, including a 25% surtax on imports from Mexico and Canada and a 10% surtax on Chinese goods, are likely to increase inflation.
This could undermine investor confidence in cryptocurrency markets.
However, we are also seeing a number of active spot ETF applications from major players like Bitwise and Grayscale for assets like Dogecoin (DOGE), Solana (SOL), XRP and Litecoin (LTC).
“If the SEC approves these, it will signal more legitimacy for the digital asset sector and trigger more capital inflows, potentially pushing prices higher.”
As you may recall, former BitMEX CEO Arthur Hayes recently said that BTC would first fall to around $75,000 before starting a bigger bull run.
*This is not investment advice.
