Bitcoin (BTC) plunged to below $38,000 on March , giving up all the gains it had made last week, which saw BTC/USD rally over $45,000.
BTC back below $40K as oil soars
The losses appeared due, primarily, to selloffs across the risk-on markets, led by the 18% rise in international oil benchmark Brent crude to almost $139 per barrel early March 7, its highest level since 2008.
Nonetheless, Bitcoin’s inability to offer a hedge against the ongoing market volatility also raised doubts over its “safe haven” status, with its correlation coefficient with Nasdaq Composite reaching 0.87 on Monday.
Conversely, Bitcoin’s correlation with its top rival gold came to be minus 0.38, underscoring they have been largely moving in opposite to one another during the ongoing market turmoil.
On one hand, Bitcoin’s potential to continue its decline remains high amid the worsening geopolitical conflict between Russia and Ukraine and prospects of higher rate hikes in March.
Nevertheless, some technical and on-chain indicators are flashing bullish on lower timeframes, suggesting a potential price rebound towards $60,000 in the months ahead.