According to a number of market observers, a number of events could affect the price of Bitcoin (BTC) in March. From regulatory announcements to a hacked refund, here are some upcoming events to mark on your calendar.
Experts on the subject note that due to the rapid rise in the cryptocurrency’s price since 2014, there is concern that consumers will sell their Bitcoins for a profit after purchasing them. According to analyst Coin Bureau, this could be a sign of increased selling pressure in the market. While analysts like Miles Deutscher predict that not all borrowers will sell their BTC, the price will not change.
Mt. Gox Buyback Still On The Agenda
Mt. Gox has until September 30 to make a redemption, and this deadline has been repeatedly pushed back in the past. So there is no guarantee that this will be the case in the near future.
Inflation Figures In The USA
On the other hand, the U.S. is expected to release employment statistics on March 10, which will have an impact on the country’s economy. In addition, the U.S. government will release the Consumer Price Index (CPI) and Producer Price Index (PPI) on March 14 and 15. “This will show us where inflation stands in the country,” the agency said, adding, “If it goes up again, that’s not good news.”
In addition, the Federal Reserve will decide on March 22 how much it will raise interest rates. According to the bureau, the increase “will probably be 25 points,” but if it’s 50 points, “that would be crazy.”
Similarly, Deutscher noted that the Bitcoin market “exists outside of a vacuum.” “Macroeconomic factors have been the main driver for most cryptocurrencies for years,” Deutscher said, encouraging investors to pay attention to the March 14 inflation report, which will influence the Fed’s March 22 decision.
If these factors materialize, they could trigger a recovery after the price decline.
Analyst Michal van de Poppe stated that the Fed will consider rate hikes, adding the possible bankruptcy of the subsidiary of Silvergate Bank, an American bank that provides cryptocurrency-based financial services.
Will The Market Live Up To Expectations?
Considering all these developments, the expert predicted that selling pressure could arise on the market and prices could fall. However, he predicted that the phenomenon of “selling on rumors and buying on news” could occur.
The expert explained that given the turmoil in the market, investors could create downward pressure by liquidating their holdings and then trigger a recovery by buying at low prices. Therefore, the impact of the above events should be carefully analyzed.