Crypto Daybook Americas: Bitcoin Falls as Investors Turn to ‘Doomsday Asset’ Gold

Your day-ahead look for March 10, 2025

The crypto market continues to struggle, primarily due to disappointment over the lack of a U.S. government plan to purchase Bitcoin as part of its strategic reserve. This situation arises amidst ongoing macroeconomic concerns.

BTC and ETH Performance

BTC has dropped to $80,000 and currently trades below the 200-day simple moving average. Meanwhile, ether has fallen below the significant support level of $2,100. Many investors are reevaluating Bitcoin, viewing it as a high-risk asset, which has negatively impacted its perceived role as a reliable store of value.

“Many investors are pulling out of Bitcoin, viewing it as a risky asset class for the first time since Trump took the White House. It’s no longer playing its role as a store of value. Gold prices have spiked as many go back to the original ‘doomsday asset’—no surprise given the ongoing tariffs and geopolitical tensions,” said Zach Burks.

Economic Factors at Play

Tariffs are causing challenges for the Federal Reserve to implement rate cuts, despite a downward trend in real-time inflation measures. Fed Chair Jerome Powell recently stated that further clarity on Trump’s policies is needed before any further actions are taken.

At the same time, Japan’s recent wage growth has strengthened the possibility of a Bank of Japan interest rate hike. This dynamic typically triggers volatility in risk assets, further affecting cryptocurrencies.

Looking Ahead

While there is uncertainty about whether the current market weakness will persist, some analysts believe there are indicators suggesting a quick return of institutional buyers to support falling prices. Alex Kuptsikevich, Chief Market Analyst at FxPro, emphasized that low trading volumes during weekends diminish the weight of bearish signals.

What to Watch:

Crypto Events:
- March 10: Mainnet launch of Movement (MOVE) on Ethereum.
- March 11: Congressional hearing on stablecoins.
- March 17: CME Group will launch Solana (SOL) futures.

Market Movements

BTC is down 4.61%, now at $82,373.88.
ETH is also down 1.6% to $2,101.66.
Gold maintains a slight increase at $2,909.10/oz.

Maintain caution and stay observant of market trends!