Bitcoinโs recent rally above the key psychological threshold of $90,000 proved short-lived, with analysts pointing to ongoing macroeconomic uncertainties and a significant reduction in institutional investments in cryptocurrency markets.
Bitcoin (BTC) staged a near 10% recovery to above $95,000 on March 2 before forming a double-top chart pattern around $94,200 on the daily chart, a setup that indicates an imminent price decline.
Bitcoin bottomed at around $81,400 the following day and has since been struggling to remain above the $90,000 mark, TradingView data shows.
BTC/USD, 1-day chart, double top. Source: TradingViewย
Multiple factors are contributing to the Bitcoin slump, including US spot Bitcoin exchange-traded funds (ETFs), according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
โSignificant outflows from spot Bitcoin ETFs have amplified selling pressure, as institutional investors pulled back, likely reacting to macroeconomic uncertainties and shifting risk sentiment.โ
The US spot Bitcoin ETFs are seeing their fourth consecutive week of net negative outflows after recording over $2.6 billion worth of cumulative net outflows during the last week of February, Sosovalue data shows.
Bitcoin ETF net flows, weekly chart. Source: Sosovalue
Beyond ETF inflows, macroeconomic factors are also pressuring Bitcoinโs price action, Lee said, adding:
โNew 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.โ
Still, analysts remained optimistic about Bitcoinโs price trajectory for late 2025, with price predictions ranging from $160,000 to above $180,000.
Related: Rising Bitcoin activity hints at market bottom, potential reversal
US tariff concerns may be alleviated next week
Some of the concerns related to a potential global trade war may be alleviated with next weekโs announcements, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.
The implementation of US tariffs has โweighed inโ on crypto markets after going into effect, leading to declines in digital assets and traditional equities, the analyst said, adding:
โHowever, 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.โ
Related: Bitcoin price risks correction to $72K as investor sentiment weakens
Trade policy uncertainty will likely โkeep sentiment guardedโ while the increased likelihood of Federal Reserve rate cuts may โsuggest a potential turnaroundโ for crypto markets, added the analyst.
Meanwhile, the wider crypto market is still recovering from the $1.4 billion Bybit hack on Feb. 21, marking the largest hack in crypto history.
Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodlerโs Digest, Feb. 23 โ March 1
