Bitcoin’s price is expected to stay under pressure until April, with analysts warning a stronger U.S. dollar and shifting market dynamics influencing its trajectory.

Bitcoin’s (BTC) price may stay under correction until April, according to a new Matrixport analysis, which ties the drop to global liquidity and macro factors, including a stronger U.S. dollar putting pressure on the cryptocurrency.

Spot Bitcoin exchange-traded funds have seen massive inflows, reaching $39 billion in just 14 months. However, as Wall Street has embraced Bitcoin, the largest cryptocurrency by market capitalization has become more tied to traditional financial factors, the analysts say.

“A stronger U.S. dollar causes this liquidity measure to decline, which suggests downward pressure on Bitcoin prices. Global liquidity peaking in late December 2024-driven by a surging U.S. dollar-provides a clear explanation for Bitcoin’s ongoing correction.”

Matrixport.

With Bitcoin becoming more tied to traditional finance, the analysts now expect the price downturn to last until at least March or April. After the correction, Bitcoin could try to bounce back to previous highs, they add.

Matrixport also notes the growing role of Wall Street investors. While wealth and asset managers see Bitcoin as a long-term investment, hedge funds are using arbitrage strategies to profit from Bitcoin’s volatility. Per Matrixport, these hedge funds “collectively hold $10 billion in Bitcoin ETFs, and with total inflows reaching $39 billion, this suggests that at least 25% of Bitcoin ETF capital is tied to arbitrage trades.”