BTC sought a rebound after multi-month lows on March 10, as traditional sell-offs accompanied the opening of Wall Street trading.

TradingView data showed that the BTC/USD pair lost approximately 4% on the day, dropping to $79,170 on the Bitstamp exchange.

Weakness continued into the end of the week as investors worldwide sought safe-haven assets.

Wall Street stocks also saw significant declines: the S&P 500 and Nasdaq Composite indices lost 2% and 3.5%, respectively.

Reacting to the situation, the analytical resource The Kobeissi Letter noted that U.S. government spending cuts, initiated by the Department of Government Efficiency (DOGE), may have contributed to the market downturn.

“Despite the focus on the trade war, the impact of revised government spending expectations should not be underestimated,” The Kobeissi Letter stated in its latest analysis on platform X.

The Kobeissi Letter also pointed out that the cryptocurrency market has lost $1 trillion in capitalization over the past two months.

“The rally that followed the announcement of the U.S. Strategic Reserve has been completely erased,” the report added, commenting on BTC/USD price movements.

Market sentiment remained mixed, as investors were uncertain where a more stable bottom for BTC might form.

Popular trader and analyst Rekt Capital advises market participants to watch for a rising Relative Strength Index (RSI) during price declines as a potential reversal signal.

“In the future, it will be important to monitor how Bitcoin forms lower lows on the price chart and higher lows on RSI — this is a sign of bullish divergence,” the user wrote, analyzing daily timeframes.