Bitcoin’s recent rally above the $90,000 mark was short-lived, with the cryptocurrency struggling to hold its ground.
Bitcoin’s recent rally above the $90,000 mark was short-lived, with the cryptocurrency struggling to hold its ground. After a near 10% recovery to over $95,000 on March 2, Bitcoin formed a double-top chart pattern around $94,200, signaling a potential price decline. The cryptocurrency dropped to around $81,400 the next day and has since been battling to maintain its value above $90,000.
Several factors are contributing to this downturn. One of the primary reasons is the ongoing outflows from U.S. spot Bitcoin exchange-traded funds (ETFs). These ETFs have experienced their fourth consecutive week of net negative outflows, amounting to over $2.6 billion by the end of February. Ryan Lee, the chief analyst at Bitget Research, suggested that these outflows are adding to the selling pressure on Bitcoin, with institutional investors pulling back due to macroeconomic uncertainties and changing risk sentiments.
Additionally, macroeconomic factors, particularly the announcement of new U.S. trade tariffs by President Trump, are weighing on Bitcoin’s price. These tariffs have raised concerns about inflation and economic stability, which has caused investors to shift their focus toward safer assets rather than riskier investments like Bitcoin. This shift in investor sentiment has further contributed to the recent decline in Bitcoin’s price.
However, there is still some optimism in the market. Analysts predict a potential price increase for Bitcoin in the long run, with projections ranging from $160,000 to $180,000 by late 2025. Iliya Kalchev, a dispatch analyst at Nexo, suggested that concerns about trade tariffs could ease in the near future, especially if a deal to reduce tariffs on Canada and Mexico is announced. Such a move could alleviate some of the trade tensions that have been impacting market sentiment.
Despite these challenges, Bitcoin’s recovery may face obstacles due to the broader economic conditions. The cryptocurrency market is still grappling with the aftermath of the $1.4 billion Bybit hack in February, the largest hack in crypto history. While Bitcoin’s price remains volatile, many market participants remain hopeful that a rebound will come, particularly once trade policies stabilize and market conditions improve.
The combination of Bitcoin ETF outflows, macroeconomic uncertainties, and global trade concerns has created a tense environment for the cryptocurrency market, leaving many traders uncertain about Bitcoin's near-term trajectory. However, long-term prospects for Bitcoin remain positive, with many analysts expecting a resurgence in its value as economic conditions improve.
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