The recent surge in Bitcoin’s value, surpassing the crucial psychological level of $90,000, was short-lived, as analysts highlight persistent macroeconomic uncertainties and a notable decrease in institutional investments within the cryptocurrency markets.
On March 2, Bitcoin (BTC) experienced a nearly 10% rebound, climbing above $95,000, before establishing a double-top chart pattern around $94,200 on the daily chart, which typically signals an impending price drop.
The following day, Bitcoin hit a low of around $81,400 and has been struggling to stay above the $90,000 threshold since, according to TradingView data.
Several factors are contributing to the decline in Bitcoin’s price, particularly regarding US spot Bitcoin exchange-traded funds (ETFs), as noted by Ryan Lee, chief analyst at Bitget Research.
The analyst shared with Cointelegraph:
“Significant withdrawals from spot Bitcoin ETFs have intensified selling pressure, as institutional investors are retreating, likely in response to macroeconomic uncertainties and changing risk appetites.”
US spot Bitcoin ETFs are currently experiencing their fourth consecutive week of net negative outflows, having witnessed over $2.6 billion in cumulative net outflows during the last week of February, according to Sosovalue data.
In addition to ETF inflows, macroeconomic elements are exerting pressure on Bitcoin’s pricing, Lee added:
“Recent tariff announcements from President Trump have heightened worries about inflation and economic stability, leading investors to prefer safer assets over riskier ones like Bitcoin.”
Nevertheless, analysts are still optimistic about Bitcoin’s price outlook for late 2025, with predictions ranging from $160,000 to over $180,000.
Concerns over US tariffs may ease next week
Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, suggests that some concerns regarding a potential global trade war may be mitigated with announcements expected next week.
The enforcement of US tariffs has “impacted” crypto markets since their implementation, causing declines in digital assets and traditional stocks, as noted by the analyst, who added:
“However, long-term optimism has prevailed over temporary discomfort after US Commerce Secretary Howard Lutnick indicated a potential announcement regarding reduced tariffs on Canada and Mexico as soon as Wednesday.”
Trade policy uncertainty may continue to “keep sentiment cautious,” while the increased probability of Federal Reserve rate cuts could “hint at a potential rebound” for crypto markets, the analyst concluded.
In the meantime, the broader crypto market is still recovering from the $1.4 billion Bybit hack that occurred on February 21, marking the largest hack in crypto history.
