Bitcoin Market Update (March 7, 2025)
Current Price
As of March 7, Bitcoin (BTC) is trading around $88,000. Over the past 24 hours, the highest recorded price was approximately $91,600, while the lowest dipped to $84,600, marking an 8% price range within the day. Compared to the previous day, BTC is slightly down by 1.6%, though it has rebounded significantly from last week’s temporary drop to the $78,000 range. However, it remains about 20% below its all-time high of $109,800, recorded earlier this year.
Market Data for the Past 24 Hours
Bitcoin’s 24-hour trading volume stands at approximately $50 billion, while its market capitalization has reached $1.78 trillion. This marks a decrease in volume compared to the $80 billion+ days observed during last week’s sharp price fluctuations. Bitcoin’s market dominance currently stands at 59%, indicating its continued strength within the crypto market.
Volatility remains high, with daily fluctuations reaching several thousand dollars. The 30-day historical volatility index is hovering around 3%, reflecting the strong market swings seen since late February. While Binance remains the largest exchange by trading volume, its market share has slightly declined from 60% last year to around 54%, with Bybit overtaking Coinbase to become the second-largest exchange, accounting for approximately 16% of global trading volume.
Key Factors Behind Price Movements
Several macroeconomic, regulatory, and on-chain factors have influenced Bitcoin’s price over the past 24 hours.
Macroeconomic Factors & Market Sentiment
Bitcoin’s price movements continue to be influenced by macroeconomic conditions. Investors are closely watching inflation data and central bank policies, particularly in the U.S. The Federal Reserve’s potential monetary easing has fueled speculation of increased capital inflows into Bitcoin. However, concerns over geopolitical risks and trade tensions have also introduced volatility, as investors shift between risk assets and traditional safe havens like gold. In fact, when gold reached a new all-time high, Bitcoin briefly saw a sharp decline due to increased risk aversion.
Regulatory Developments & Institutional Demand
Regulatory factors and institutional adoption have also played a significant role in Bitcoin’s recent price movements. The introduction of spot Bitcoin ETFs in the U.S. in late 2024 marked a turning point, providing institutional investors with a regulated and straightforward way to gain exposure to Bitcoin. BlackRock’s iShares Bitcoin Trust (IBIT) alone has seen over $37.2 billion in inflows, making it one of the most successful ETFs launched in recent years. This increased demand has contributed to Bitcoin’s overall market strength.
On-Chain Data & Supply Trends
On-chain data suggests that Bitcoin’s supply dynamics are becoming increasingly tight. The total amount of BTC held on exchanges has dropped to 2.45 million BTC, the lowest in the past three years. Just last November, 2.8 million BTC were available on exchanges, meaning investors have been aggressively moving funds into self-custody, reducing immediate selling pressure.
Additionally, 62% of all circulating BTC has remained unmoved for over a year, reflecting a strong long-term holding trend among investors. While Bitcoin’s daily active addresses have slightly declined from their peak levels, suggesting lower short-term trading activity, the long-term fundamentals remain strong.
Conclusion & Market Outlook
Bitcoin’s market remains in a phase of consolidation, with strong bullish catalysts but also short-term uncertainties. The key support level to watch is the low $80,000 range, as a break below this level could trigger a deeper correction. Conversely, a decisive move above $100,000 could open the door to new all-time highs.
In the medium term, Bitcoin’s outlook remains positive, driven by institutional demand, the upcoming halving event, and supply constraints. Ark Invest’s Cathie Wood maintains her $1 million BTC price prediction by 2030, though achieving such a target will require continued favorable macroeconomic conditions and broader adoption.
For now, investors should remain cautious amid high volatility, keeping an eye on both bullish and bearish scenarios while managing risk appropriately.
