Bitcoin’s price retreated over the weekend, dropping to just above $80,000 on March 10 in what analysts describe as an “ugly start” to the week. The decline comes amid heightened volatility and concerns over market liquidity, with further dips possibly on the horizon.
BitMEX co-founder and Maelstrom CIO Arthur Hayes warned that Bitcoin (BTC) could retest the $78,000 level. If it fails to hold, he predicts a further drop to $75,000. Hayes also pointed out significant open interest in Bitcoin options within the $70,000 to $75,000 range, suggesting that a move into this zone could trigger substantial volatility.
An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent. pic.twitter.com/q4cq0rthGJ
— Arthur Hayes (@CryptoHayes) March 9, 2025
According to Deribit data, Bitcoin has $696 million in open interest at the $70,000 strike price, $659 million at $75,000, and $680 million at $80,000. These figures indicate a heavy concentration of speculative positions, with traders betting on further downside pressure.
Bitcoin’s Recent Volatility and Market Sentiment
Over the past 24 hours, Bitcoin plunged more than 5%, briefly hitting $80,124 before recovering slightly to trade at $81,395 at the time of writing. Market research firm 10x Research labeled the move a “textbook correction,” noting that approximately 70% of all selling came from investors who bought within the last three months. This suggests panic-selling among recent entrants.
The broader market has seen increased instability due to macroeconomic factors. Bitcoin has been fluctuating between $80,000 and $95,000 in response to trade tariff developments and crypto-related statements from the White House. Meanwhile, the Bitcoin Fear & Greed Index has plunged into “extreme fear” territory, registering a score of 20 on March 10.
Key Inflation Reports Could Influence Bitcoin’s Trajectory
The market remains on edge as two major inflation reports are expected in the U.S. this week. If inflation shows signs of rising, the Federal Reserve could respond with tighter monetary policy, potentially weighing further on Bitcoin’s price.
Also Read: Bitcoin Faces ‘High-Stakes Game’ as US Dollar Plunges—But Analyst Warns of Key Risks
With economic uncertainty and geopolitical tensions mounting, Bitcoin investors are bracing for more turbulence in the coming days. Whether BTC holds key support levels or dips further into “goblin town,” as Hayes warned, remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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