- Bitcoin is trading around $83,100 on Thursday, marking a nearly 3% recovery this week.
- Traders are waiting for US PPI data and weekly jobless claims to gather more economic insights on Thursday.
- A recent report suggests Bitcoin might be entering a bear market.
On Thursday, Bitcoin (BTC) trades near $83,100, having seen nearly a 3% recovery this week following softer-than-expected inflation data from the US Consumer Price Index (CPI) released on Wednesday. Market participants are keenly awaiting the release of February’s US Producer Price Index (PPI) and initial jobless claims for additional economic indicators. Furthermore, a recent weekly report indicates that Bitcoin may be on the verge of a bear market.
Bitcoin experiences slight uptick as US CPI reveals easing inflation
The price of Bitcoin saw a minor recovery on Wednesday, ending the day above $83,680. This uptick was driven by the US CPI report, which indicated that both headline and core inflation rates cooled more than anticipated in February. This softer inflation data has led to speculation that the US Federal Reserve (Fed) might lower interest rates sooner than expected, resulting in a price recovery for higher-risk assets such as Bitcoin.
Despite this, the ongoing uncertainties related to US trade policies under President Trump continue to generate concerns about a potential economic slowdown, prompting investors to flock to traditional safe-haven assets instead of higher-risk ones.
In the event of low inflation and weak labor market conditions, the likelihood of rate cuts from the Fed increases, potentially bolstering higher-risk assets by improving investor confidence. Conversely, higher inflation could have the opposite effect.
Thus, traders are looking ahead to Thursday’s US PPI data and jobless claims for additional economic guidance.
Congressman Nick Begich introduces the BITCOIN Act of 2025: 1 million BTC within 5 years
On Tuesday, Congressman Nick Begich from Alaska revealed that he has put forth the BITCOIN Act of 2025 in the House of Representatives. This proposed legislation aims to create a US Strategic Bitcoin Reserve (SBR) to enhance the nation’s financial security and economic independence.
The BITCOIN Act mandates the procurement of 1 million Bitcoin over a span of five years, reflecting the scale and strategic significance of the US Gold reserves.
“No taxpayer dollars will be expended,” Begich stated during the Bitcoin for America Summit.
He added, “President Trump’s Executive Order set the stage for a long-term national strategy regarding Bitcoin, and today we are providing a robust foundation to turn that vision into reality.”
If the BITCOIN Act is passed, it would represent a significant shift in US financial policy, establishing Bitcoin as a strategic national asset, potentially driving its price upwards.
The BITCOIN Act is fiscally responsible legislation. ✅
Not a single taxpayer dollar will be used.
Bitcoin is censorship resistant, immune to geopolitical manipulation, and symbolizes the principles of economic freedom and innovation that exemplify American leadership. pic.twitter.com/tGfF9BWzvW
— Congressman Nick Begich (@RepNickBegich) March 11, 2025
Bitcoin valuation metrics suggest a bearish outlook – report indicates
A recent weekly report highlights that Bitcoin may be entering a bearish phase. The analysis indicates that all valuation metrics for BTC are currently in bearish territory.
The accompanying chart illustrates that the Bitcoin Bull-Bear Market Cycle Indicator has reached its lowest point in this cycle. Meanwhile, the MVRV Ratio Z-score has dipped below its 365-day moving average, signaling a decline in upward price momentum. Historically, valuation metrics at such levels have often foreshadowed either a significant price correction or the onset of a bear market.
Bitcoin Bull-Bear Market Cycle Indicator (Left) chart. Bitcoin MVRV Ratio Z-score (Right) chart.
The report also notes a trend of US-based spot Exchange Traded Funds (ETFs) becoming net sellers of Bitcoin this year, further applying downward pressure on the cryptocurrency’s price. Year-to-date in 2025, US Bitcoin spot ETFs reflect a net selling of -0.2K BTC, contrasting with net buying of 165K BTC during the same period in 2024. Financially, ETFs have purchased $0.7 billion in Bitcoin this year, a sharp decline from the $8.7 billion bought last year.
Bitcoin Net cumulative inflows to US spot ETFs by year chart.
The report further indicates that if Bitcoin fails to maintain the current support level between $75,000 and $78,000—just beneath the lower boundary of the Trader’s On-chain Realized Price—it may target $63,000 next. This lower figure represents the critical support level during significant price pullbacks.
Bitcoin Trader on-chain realized price bands.
Bitcoin Price Outlook: RSI indicator shows signs of bullish divergence
On Sunday, Bitcoin’s price fell below its 200-day Exponential Moving Average (EMA) of $85,648, declining 9.14% by the following day. However, Bitcoin found support around the $76,600 mark and experienced a 6.47% recovery by Wednesday. As of Thursday, it is positioned around $83,100.
The Relative Strength Index (RSI) indicates a strengthening momentum on the daily chart. Notably, the lower low formed on Tuesday in Bitcoin’s price does not correspond with a similar drop in RSI values, resulting in what is termed a bullish divergence, often signaling a potential trend reversal or a short-term rally.
If this bullish divergence is validated, BTC could possibly climb to $85,000.
BTC/USDT daily chart
Nonetheless, should Bitcoin close below $78,258 (the low from February 28), it could lead to a further decline testing the next support level at $73,072.
Bitcoin, Altcoins, Stablecoins FAQs
Bitcoin is the leading cryptocurrency by market capitalization. It functions as a digital currency intended for use as a medium of exchange without control by any one entity, thereby eliminating the need for intermediaries in financial transactions.
Altcoins refer to any cryptocurrencies other than Bitcoin. Some also consider Ethereum as a non-altcoin due to the forking that primarily arises from these two cryptocurrencies. If that assumption holds true, Litecoin can be seen as the first altcoin, having forked from the Bitcoin protocol as an “improved” version.
Stablecoins are cryptocurrencies aimed at maintaining stable value, generally backed by reserve assets they represent. To achieve stability, the value of a stablecoin is often pegged to a commodity or financial asset, like the US Dollar (USD), with its supply managed by algorithms or demand. The primary goal of stablecoins is to facilitate trading and investment in cryptocurrencies while providing a stable store of value amidst general price volatility.
Bitcoin dominance refers to the proportion of Bitcoin’s market capitalization in relation to the combined market capitalization of all cryptocurrencies. It serves as an indicator of Bitcoin’s appeal to investors. Typically, high Bitcoin dominance occurs prior to and during bullish trends when investors prefer stable cryptocurrencies with significant market capitalization. A decline in BTC dominance suggests that investors might be reallocating their assets to altcoins in pursuit of higher returns, which often incites a surge in altcoin prices.