Bitcoin’s recent surge above the psychologically important threshold of $90,000 proved to be short-lived. Analysts pointed out that macroeconomic uncertainties continue and there has been a reduction in institutional investing in cryptocurrency markets.
BitcoinBTC() made a nearly 10% rise to over $95,000 by March 2, before creating a double top chart pattern at around $94,200. This setup indicates an impending price drop.
Bitcoin has struggled to stay above $90,000. TradingView Data shows
BTC/USD, 1-day chart, double top. Source: TradingView
According to Ryan Lee of Bitget Research, the chief analyst, multiple factors contribute to Bitcoin’s slump. These include US-based spot Bitcoin ETFs.
Cointelegraph quoted the analyst:
“Significant outflows from spot Bitcoin ETFs have amplified selling pressure, as institutional investors pulled back, likely reacting to macroeconomic uncertainties and shifting risk sentiment.”
After recording a cumulative outflow of $2.6 billion during the final week of February. Sosovalue Data shows
Bitcoin ETF Net flows, Weekly Chart Source: Sosovalue
Lee stated that, beyond ETFs inflows and macroeconomic factors, Bitcoin’s prices are also affected by these:
“New tariff announcements from President Trump have heightened concerns about inflation and economic stability, prompting investors to favor safer assets over risk-on investments like Bitcoin.”
Analysts remain optimistic regarding Bitcoin’s future price in 2025. ranging from $160,000 You can also find out more about the following: above $180,000.
Related: Rising Bitcoin activity hints at market bottom, potential reversal
The US Tariff concerns could be eased by next week
Iliya Kachev, a dispatch analyst with digital asset investing platform Nexo says some concerns over a global trade conflict may be eased by the announcements made next week.
US tariffs have been implemented. “weighed in” Analyst said that after the crypto market ban was implemented, digital assets would decline, as well traditional equity markets.
“However, long-term optimism won over short-term unease after US Commerce Secretary Howard Lutnick indicated that a deal to reduce tariffs on Canada and Mexico could be announced as early as Wednesday.”
Related: Bitcoin price risks correction to $72K as investor sentiment weakens
There will be uncertainty in the trade policy. “keep sentiment guarded” While the likelihood of Federal Reserve rate reductions increasing may “suggest a potential turnaround” The analyst added that crypto markets are a growing market.
The wider cryptomarket is still recovering $1.4 billion The Bybit Hack on February 21, 2019 the largest hack in crypto history.
Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
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Source: cointelegraph.com
