[Market Analysis] Tether Dominance Soars 21%…Is Bitcoin's $60,000 Mark Under Threat?

# Bitcoin Drops 14.36% Amid Employment Data and Market Uncertainty Bitcoin closed at $80,734, marking a 14.36% decline compared to the previous week. The drop follows the U.S. February employment report, which exceeded expectations, diminishing hopes for a rate cut by the Federal Reserve. Additionally, ongoing market volatility continued despite former President Trump's executive order to stockpile Bitcoin as a strategic reserve. ## "Bitcoin Drops Despite Strategic Reserve" Amid Tariff Uncertainty Former President Trump signed an executive order to stockpile seized Bitcoin as a federal asset. However, this move fell short of market expectations. Investors were disappointed by the decision to hold only the confiscated Bitcoin without any additional purchases. The market also reacted negatively to a statement from the White House’s cryptocurrency policy head (Crypto Czar), who said that the five cryptocurrencies chosen for strategic reserves were merely those with the highest market capitalizations. Consequently, major cryptocurrencies including Solana, Ripple, Ethereum, and Cardano experienced declines alongside Bitcoin. ## Fed Hints at Rate Pause as Inflation Indicators Stabilize Federal Reserve Chairman Jerome Powell addressed the Monetary Policy Forum at the University of Chicago Booth School of Business, noting rising economic uncertainty but arguing against premature policy adjustments. He stated that the U.S. economy remains strong and that inflation is on a downtrend, though pressures from housing and service prices persist, necessitating a cautious approach. Consequently, the Fed is likely to hold rates steady at the March Federal Open Market Committee (FOMC) meeting and will consider rate cuts in late 2024, contingent on further inflation decline. Key economic indicators slated for release this week include the February Consumer Price Index (CPI), retail sales data, and the University of Michigan consumer sentiment index, all of which could heighten financial market volatility. ## Tether Dominance Surges 21%, Bitcoin's Recovery to $84,500 Crucial Tether (USDT) dominance ended at 5.47%, up 21.01% from the previous week. News that the U.S. government has no plans for additional Bitcoin purchases led to disappointment-driven selloffs. Combined with uncertainty around Trump’s tariff policies, Bitcoin weakness continued. AM Management's report noted, “In the medium to long term, the extended flat view persists, but the test will be whether Bitcoin breaches key support levels.” Failure to maintain the support zone on a daily closing basis could open the door to a decline toward the next target of $60,000. Analyst Song Seung-jae projected, “In the short term, Bitcoin needs to firmly re-establish above $84,500 to resume its upward trend. Given multiple attempts to break resistance, the likelihood of a breakout is higher than before.” ## Visit Naver Premium Content for More ## AM Management AM Management is a firm offering services by AI Quant System developers and digital asset analysts. It provides tailored investment strategy recommendations and market analysis through AI Quant Systems, helping to manage risk and set investment directions in a volatile market environment. ▶