Bitcoin price falls to a multi-month low, but data points to a possible short-term bounce
BTC and altcoin prices succumbed to this week’s negative newsflow, but sentiment analysis and on-chain data point to the possibility of a short-term bounce. March started off on a low due to a resurrection of inflationary fears. On March 7, hawkish comments from U.S. Federal Reserve chairman Jerome Powell amplified the market's expectation of a 50-basis point hike in the upcoming policy rate meeting on March 22 to March 23. On March 8, the U.S. government's $1 billion Bitcoin (BTC) transfer of assets seized from Silk Road sparked fears of a sell-off. Later on the same day, the largest crypto-friendly bank confirmed its collapse and planned to liquidate its crypto positions voluntarily. The week's events sent Bitcoin's price to a two-week low of $20,050. A spike in negative sentiment may preclude a bounce The flurry of bad news and price drops caused a significant dip in CryptoQuant's Coinbase premium index, which measures the difference in trading prices on Coinb...