Bitcoin continued its downward trend over the weekend, slipping to just above $80,000 on March 10, in what analysts are calling a troubling start to the week.
The decline has sparked concerns of further losses, with BitMEX co-founder Arthur Hayes warning that the asset could soon test key support levels.
“It looks like Bitcoin will retest $78,000,” Hayes wrote on X , adding that if the level fails, the next target would be $75,000. He also pointed to a significant amount of Bitcoin options open interest within the $70,000 to $75,000 range, warning that if the asset falls into that zone, it could result in heightened volatility and a sharp sell-off.
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Options Market Signals Growing Concern Over Bitcoin’s Decline
The options market reflects this concern. According to Deribit data, there is $696 million in open interest at the $70,000 strike price, $659 million at $75,000, and $680 million at $80,000, suggesting that derivatives traders are betting against short-term price stability.
Bitcoin has dropped more than 5% in the past 24 hours, hitting a low of $80,124 before staging a modest recovery to $81,395 at the time of writing.
The asset has been highly volatile in recent weeks, fluctuating between $80,000 and $95,000 amid shifting market sentiment driven by trade policy changes and crypto-related announcements from the White House.
Arthur Hayes had previously predicted that Bitcoin would revisit $75,000 before entering a long-term bull cycle that could push the asset toward $250,000.
An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent. pic.twitter.com/q4cq0rthGJ
— Arthur Hayes (@CryptoHayes) March 9, 2025
In February, he warned that the market was heading for “goblin town” as hedge funds began unwinding their Bitcoin ETF positions. Bitcoin’s lowest point of the year came on February 28, when it briefly dipped into the $78,000 range—a level it appears to be revisiting.
Market research firm 10x Research described the recent decline as a “textbook correction” in a report published on March 10.
The firm noted that roughly 70% of the selling came from investors who bought Bitcoin within the past three months, indicating that recent entrants to the market are panic-selling in response to the downturn.
Meanwhile, Bitcoin sentiment has turned increasingly bearish. The Bitcoin Fear & Greed Index has plunged into “extreme fear”, registering a score of 20 on March 10, reflecting heightened market uncertainty.
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Investors Brace for Volatility Ahead of Key U.S. Inflation Reports
The coming week could bring further turbulence as investors brace for two major U.S. inflation reports, which could influence Federal Reserve monetary policy. Rising inflation could prompt hawkish measures from the central bank, potentially adding more pressure to risk assets like Bitcoin.
Beyond economic concerns, trade tensions are also on the rise. Canada has imposed retaliatory tariffs after the Liberal Party elected former central banker Mark Carney as its new president.
In his victory speech on March 9, Carney sharply criticized Donald Trump’s tariffs on Canada, stating, “Americans should make no mistake … in trade, as in hockey, Canada will win.”
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Key Takeaways
- Bitcoin slipped to just above $80,000, with analysts warning of further declines toward $75,000.
- Options market data suggests traders are bracing for increased volatility as Bitcoin nears critical support levels.
- Macroeconomic uncertainty and trade tensions could add further pressure on Bitcoin in the coming week.
