Bitcoin’s (BTC) price fell 11.7% during this year’s first quarter, its worst start to a year since 2015.
According to NYDIG Research, Bitcoin had its most bearish first-quarter performance in a decade as sentiment towards risk assets such as cryptocurrencies has soured. Bitcoin’s decline in the first quarter is especially notable given that the crypto’s price was at an all-time high of just over $109,000 on Jan. 20, the day of U.S. President Donald Trump’s inauguration.
However, since then it has been all down hill for Bitcoin and other crypto, which are falling in tandem with stocks. The price of Bitcoin is currently at $78,400 as a market selloff prompted by U.S. President Donald Trump’s import tariffs worsens. Bitcoin has now fallen below the key support level of $80,000 as investors continue to flee risk assets for the safety of cash and bonds.
Support Level Breakdown
Until the beginning of April, Bitcoin had managed to trade above $80,000 and analysts saw the level as providing key resistance for the largest cryptocurrency by market capitalization. Analysts anticipate that Bitcoin and other crypto will continue dropping along with equities as fears of a global trade war and recession continue to shake markets worldwide.
As bad as the selloff in Bitcoin has been, other cryptos are faring even worse, with Ethereum (ETH) down as much as 7% and XRP (XRP) down 10% on April 7. Meme coins are also getting battered, with the price of Dogecoin (DOGE) down 7% at the start of the trading week.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 15.03% in the last 12 weeks.
