Bitcoin’s attempt to hold above the crucial $90,000 level has been short-lived, with analysts citing macroeconomic uncertainty and a notable decline in institutional investment as key factors affecting the market.
Bitcoin (BTC) surged nearly 10% on March 2, briefly surpassing $95,000 before encountering resistance at around $94,200—a double-top pattern on the daily chart that typically signals an impending pullback.
Following this, the cryptocurrency dipped to approximately $81,400 before struggling to regain footing above $90,000, according to TradingView data.
ETF Outflows Add to Selling Pressure
According to Ryan Lee, chief analyst at Bitget Research, multiple elements are contributing to Bitcoin’s downturn, with spot Bitcoin exchange-traded funds (ETFs) playing a significant role.
“Heavy outflows from spot Bitcoin ETFs have intensified selling pressure as institutional investors scale back exposure, likely in response to macroeconomic concerns and shifting risk sentiment,” Lee explained.
US-based spot Bitcoin ETFs are now experiencing their fourth consecutive week of net outflows, with Sosovalue data indicating over $2.6 billion in withdrawals during the final week of February.
Macroeconomic Uncertainty Weighs on Bitcoin
Beyond ETF activity, broader economic concerns are also influencing Bitcoin’s price movement. Lee noted:
“New tariff proposals from President Trump have heightened fears about inflation and economic stability, prompting investors to seek safer assets instead of risk-heavy investments like Bitcoin.”
Despite these headwinds, analysts remain positive about Bitcoin’s long-term trajectory, with price targets ranging from $160,000 to over $180,000 by late 2025.
Trade Policy Uncertainty May Ease Soon
Some of the uncertainty surrounding global trade tensions could be resolved as early as next week, according to Iliya Kalchev, a dispatch analyst at Nexo.
“The introduction of new US tariffs has weighed on both crypto and traditional markets, leading to declines,” Kalchev stated. “However, optimism is starting to outweigh short-term concerns after US Commerce Secretary Howard Lutnick suggested that an agreement to lower tariffs on Canada and Mexico could be announced as soon as Wednesday.”
While uncertainty over trade policy may keep market sentiment cautious, expectations of Federal Reserve rate cuts could signal a potential shift for crypto markets, the analyst added.
Meanwhile, the broader cryptocurrency sector is still recovering from the $1.4 billion Bybit hack on Feb. 21, the largest security breach in crypto history.
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