By Chris Hollingworth 
Bitcoin experienced a price drop from $87,241 to $81,331 between March 28 and March 31, wiping out gains accumulated over the previous 17 days. This 6.8% correction led to the liquidation of $230 million in bullish Bitcoin futures positions. The decline closely mirrored the downward trend in the US stock market, with S&P 500 futures hitting their lowest levels since March 14.
Despite struggling to maintain levels above $82,000 on March 31, key indicators suggest strong investor confidence and potential signs of Bitcoin decoupling from traditional markets in the near future.
Traders are concerned about the impact of the global trade war on economic growth, particularly following the announcement of a 25% US tariff on foreign-made vehicles on March 26. Goldman Sachs and Barclays analysts have revised down their year-end S&P 500 targets in response to increased risk perception among investors.
In this uncertain environment, gold surged to a record high above $3,100 on March 31, reinforcing its status as a safe haven asset. Simultaneously, the US dollar weakened against a basket of foreign currencies, with the DXY index dropping from 107.60 in February to 104.10.
Bitcoin, often referred to as “digital gold” and an “uncorrelated asset,” has seen a 36% gain over the past six months while the S&P 500 index fell by 3.5% during the same period. Despite questions about its narrative, several Bitcoin metrics indicate strength, suggesting that long-term investors remain unfazed by short-term market fluctuations.
The mining hashrate, a measure of the computing power behind Bitcoin’s network, reached an all-time high of 856.2 million terahashes per second on March 28. This increase from 798.8 million in February highlights the confidence of miners in the network’s stability, as evidenced by minimal panic selling activities on exchanges.
Bitcoin miner MARA Holdings recently filed a prospectus to sell up to $2 billion in stocks to bolster its Bitcoin reserves, echoing a trend seen with GameStop’s move to consider Bitcoin and stablecoin acquisitions. Additionally, cryptocurrency exchange reserves hit a six-year low on March 30, signaling a shift towards long-term holding strategies among investors despite Bitcoin’s recent price decline.
Institutional investors have shown confidence in Bitcoin, with near-zero net outflows in US spot Bitcoin exchange-traded funds between March 27 and March 28. These developments, alongside record-high mining hashrate and corporate adoption, indicate a positive outlook for Bitcoin investors in the long term.
