Cryptocurrency News Flash: Bitcoin Continues to Decline, Geopolitical Risks as Main Cause

As of early March, Bitcoin (BTC) is trading around $67,360, showing a slight gain compared to last week, but on a larger time scale, it faces significant downward pressure. Amid the overall cryptocurrency market being affected by geopolitical uncertainties and worsening macroeconomic conditions, Bitcoin is approaching its longest consecutive decline to date.

Deteriorating macro environment accelerates Bitcoin decline

With escalating tensions in the Middle East, the US dollar index has risen to 97.7, and WTI crude oil has increased to $65 per barrel. This strong dollar and rising resource prices are exerting substantial downward pressure on risk assets, including Bitcoin.

Traditionally, rising dollar index and oil prices serve as signals of global financial tightening, leading to decreased growth expectations. In this environment, volatile assets like Bitcoin tend to become targets for investor risk aversion, increasing selling pressure. According to data from market analysis firm Polymenet, the probability of strikes occurring by the end of the month is 27%, indicating that uncertainty remains high.

Record consecutive declines, loss of technical support

The current Bitcoin downtrend is extremely severe. From its historic high of $126,080 in October, it has fallen more than 50%, reaching a low of $60,000. On a weekly basis, it is expected to close in the red for five consecutive weeks, approaching the record of nine consecutive weekly declines from March to May 2022.

On a monthly basis, Bitcoin has declined for five consecutive months since October, making it the second-longest streak of continuous decline on record. The only longer period was six months of decline from 2018 to 2019. Additionally, compared to gold, Bitcoin has underperformed for seven consecutive months, marking the longest such streak in this pairing.

From a technical perspective, weakness is also severe, with multiple support levels broken, and the disappearance of technical buy zones continues.

Latin American crypto markets remain strong, regional demand increases

Meanwhile, from a regional perspective, the Latin American cryptocurrency market is expanding rapidly. Transaction volume is projected to reach $730 billion in 2025, a 60% increase year-over-year, with adoption accelerating across the region.

Brazil and Argentina are leading growth, with Brazil maintaining its dominance in trading volume. Argentina, on the other hand, is accelerating adoption through cross-border remittances and the rapid expansion of stablecoin usage.

Stablecoins are particularly practical, used for international remittances and receiving funds from platforms like PayPal, functioning as a way to bypass traditional banking networks. The expansion of such practical use cases is a key driver of cryptocurrency adoption in Latin America.

Despite global downward pressures, regional demand driven by local needs continues to sustain cryptocurrency activity, indicating the market’s overall complexity.