▲ Bitcoin (BTC), Ethereum (ETH)

As volatility expands in the prices of Bitcoin (BTC) and Ethereum (ETH), mounting geopolitical crises and uncertainty surrounding macroeconomic indicators are pressuring the market, demanding heightened caution from investors.

According to a March 8 (local time) report by cryptocurrency media outlet Bitcoinist, Bitcoin and Ethereum are undergoing a painful process of searching for direction amid escalating geopolitical tensions and mixed U.S. economic data. In particular, U.S. President Donald Trump’s mention of a potential four- to five-week military campaign has factored a war premium into the market, dampening investor sentiment.

Market analysts are noting that Bitcoin has recently shown a high correlation of 0.75 with the Nasdaq index. This suggests that Bitcoin is moving more like technology stocks than a safe-haven asset such as gold, implying that it could be among the first to be hit as a risk asset when macroeconomic uncertainty intensifies. Bitcoinist assessed, “For Bitcoin to be recognized as true digital gold, it must break away from its correlation with the stock market and demonstrate an independent trend.”

Ethereum is also striving to secure key technical support levels as inflows through spot Ethereum ETFs have stagnated. Although institutional demand remains, ETF outflows triggered by geopolitical risks have acted as catalysts for price declines. However, experts expect that the potential passage of the U.S. cryptocurrency market structure bill (CLARITY) and the stablecoin regulation bill GENIUS, currently under review in the U.S. Senate, could serve as long-term catalysts for price appreciation.

From a technical perspective, Bitcoin is currently seeing intense competition between buyers and sellers near major support levels. The Fear and Greed Index entering the extreme fear zone sends a dual signal: warning of possible short-term panic selling while also presenting a potential accumulation opportunity for long-term investors. Notably, spot Bitcoin ETFs hold $88 billion in assets, equivalent to 6% of total supply, which could provide strong downside support in the event of further price declines.

Investors should pay attention to the upcoming U.S. nonfarm payroll and unemployment figures, as these will influence the Federal Reserve’s interest rate policy direction. If the labor market proves stronger than expected, a stronger dollar could add further downward pressure to the digital asset market. Bitcoinist advised that given the possibility of a sharp contraction in market liquidity, investors should adopt a conservative approach and observe the market’s cleansing phase rather than engage in excessive leveraged trading.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from it. The content should be interpreted solely for informational purposes.

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