- Bitcoin has stabilized at approximately $87,000 on Tuesday following a brief recovery over the last two days.
- A recent report from Crypto Finance indicates that the cryptocurrency market has aligned with general risk trends, showing a typical beta reaction to conventional financial markets.
- Traders should exercise caution as the defunct exchange Mt. Gox transferred $1 billion worth of BTC.
As of Tuesday, Bitcoin (BTC) has stabilized around $87,000 after a slight recovery over the last couple of days. A report from Crypto Finance pointed out that the cryptocurrency market has mirrored overall risk trends, demonstrating a classic beta correlation with traditional financial markets. Additionally, Microstrategy (MSTR) disclosed its acquisition of 6,911 BTC for $584.1 million. However, traders need to remain vigilant due to the $1 billion BTC transfer by the defunct exchange Mt. Gox.
Bitcoin Prices Reflect Traditional Market Trends
The week kicked off positively for Bitcoin, which peaked at $88,765 on Monday. This increase coincided with the US stock markets experiencing their strongest Monday start since 2022, spurred by optimism that Trump’s upcoming tariff announcement would be more favorable than anticipated.
On Tuesday, the Crypto Finance report stated that the cryptocurrency market has responded to broader risk movements, aligning closely with conventional market trends.
The report notes that futures open interest remains low, highlighting a lack of demand for leverage. Similarly, in the options market, the 30-day BTC implied volatility is currently trading at 46v, which is a 25v discount compared to the last 30-day realized volatility, suggesting a ±5.5% movement over the following month. This establishes key support around $82,000 and resistance at approximately $91,500, with demand for downside protection still high. “I see value in accumulators at these levels,” stated an analyst from Crypto Finance.
MicroStrategy Purchases 6,911 BTC
The impetus behind Bitcoin’s recent recovery was the announcement from Microstrategy, under Michael Saylor, that it acquired 6,911 BTC for $584.1 million at an average price of $84,529 per Bitcoin, achieving a 7.7% BTC yield year-to-date for 2025. The firm currently holds 506,137 BTC, purchased for $33.7 billion at an average price of $66,608 per Bitcoin.
$MSTR has acquired 6,911 BTC for ~$584.1 million at ~$84,529 per bitcoin and has achieved BTC Yield of 7.7% YTD 2025. As of 3/23/2025, @Strategy holds 506,137 BTC acquired for ~$33.7 billion at ~$66,608 per bitcoin. $STRK
— Michael Saylor⚡️ (@saylor) March 24, 2025
“The only way Bitcoin won’t crash is if MSTR continues buying indefinitely. But eventually, it won’t be possible to sell any more MSTR stock or borrow money for further purchases. At that point, both Bitcoin and MSTR could collapse, potentially leading MSTR into bankruptcy,” cautioned Chief Economist and Global Strategist Peter Schiff in his X post.
Signs of Concern Emerge
Data from Arkham Intelligence revealed that Mt. Gox moved $1 billion worth of BTC on Tuesday. Initially, 893 BTC were transferred to the Mt. Gox Hot Wallet, followed by an additional 10,608 BTC to another wallet.
Traders should proceed with caution, as such a significant transfer of Bitcoin to wallets typically indicates an intention to sell or distribute, potentially leading to a bearish sentiment as the market anticipates an increased supply.
Bitcoin Price Outlook: Bulls Eyeing the $90,000 Mark
Bitcoin’s price rose above its 200-day Exponential Moving Average (EMA), closing around $85,500 on Sunday and increasing by 4.45% by Monday. As of Tuesday, BTC is trading around $87,000.
If BTC manages to maintain support at the 200-day EMA of $85,539, it may continue its upward trend, aiming to retest the psychological level of $90,000. A successful close above this benchmark could further propel the rally towards the March 2 peak of $95,000.
The Relative Strength Index (RSI) on the daily chart reads 51, indicating rising bullish momentum as it sits above the neutral mark of 50. Moreover, the Moving Average Convergence Divergence (MACD) indicator signaled a bullish crossover on the daily chart last week, suggesting an impending positive trend. Additionally, rising green histogram levels above the neutral zero line reflect strong upward momentum.
BTC/USDT daily chart
However, if BTC fails to hold the support at its 200-day EMA and falls below $85,000, it could lead to a decline toward the next support level around $78,258.
FAQs about Bitcoin, Altcoins, and Stablecoins
Bitcoin is the leading cryptocurrency by market cap, designed to function as a form of currency that is not controlled by any single person, organization, or entity, negating the need for third-party involvement in transactions.
Altcoins refer to any cryptocurrency other than Bitcoin, although some also consider Ethereum as an exception. Litecoin is often recognized as the first altcoin, having been forked from the Bitcoin protocol and viewed as an “enhanced” version.
Stablecoins are cryptocurrencies engineered to maintain a consistent price, with their value backed by a reserve of the asset they represent. They are pegged to a commodity or financial instrument, such as the US Dollar (USD), and their supply is regulated algorithmically or by market demand. The goal of stablecoins is to provide an entry and exit point for investors interested in cryptocurrencies while offering a stable means to store value amid general cryptocurrency volatility.
Bitcoin dominance measures the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies. This metric provides insight into Bitcoin’s popularity among investors. High BTC dominance typically occurs before and during market rallies when investors favor the stability of major cryptocurrencies like Bitcoin. Conversely, a decline in BTC dominance often signals that investors are reallocating their capital into altcoins seeking higher yields, initiating altcoin rallies.