Bitcoin's NVT Golden Cross Sparks Market Fears Amid Trade Tensions

Bitcoin's NVT Golden Cross Indicates Potential Overheating Amid Recent Market Decline

The cryptocurrency market is facing a renewed sense of unease, with the odds of a significant bitcoin (BTC) price correction increasing sharply amid escalating trade tensions and inflation concerns. Derixe.xyz, a platform for on-chain options trading, shows a 22% probability of bitcoin’s price dropping to $75,000 by March 28, more than double the 10% seen just last week. The shift comes amid the recent import tariff war between the U.S. and its key trading partners, including Canada, Mexico, and China.

The tariffs, according to market analysts, could fuel inflation, complicating central banks’ efforts to lower interest rates and dampening investor sentiment in cryptocurrency markets. The impact of the dispute is being felt across various asset classes. Andre Dragosch, head of Europe at Bitwise, said on social media the tariffs are sending shock waves by strengthening the U.S. dollar and contracting the global money supply.

Bitcoin is down more than 8% over the past week to now trade at $95,155, while the second-largest cryptocurrency by market capitalization, Ethereum’s ether, is down some 18% in the same period to now stand at $2,550.

The cryptocurrency appears to be forming a double-top reversal pattern, which could see it drop to $75,000. The move would be consistent with a recent prediction from Arthur Hayes, chief investment officer of Maelstrom and former BitMEX CEO, who said the cryptocurrency will drop to that level before embarking on a bigger bull run.

Meanwhile, South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off. Data from CryptoQuant shows that the kimchi premium surged to 9.7% for bitcoin in the early trading hours of Monday, its highest level since April 2024, when it briefly surpassed 13%. While the premium has since receded slightly to a little over 8%, its persistence underscores the steadiness of BTC on these exchanges.

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