Bitcoin Endures Challenges as Tariff Concerns Otient ETF Investor Sentiment
Bitcoin has struggled to maintain its position above $90,000 following a recent rally, hindered by institutional withdrawals from ETFs and macroeconomic uncertainties. Despite concerns over tariffs and inflation, analysts remain hopeful for significant price growth in the future, estimating Bitcoin could reach between $160,000 and $180,000 by late 2025.
Bitcoin has recently faced difficulties staying above the $90,000 threshold following a brief rally that peaked at approximately $95,000 on March 2. The cryptocurrency encountered a notable double-top chart formation around $94,200, indicating a potential decline in its price. Subsequently, Bitcoin dropped to about $81,400, leading to ongoing struggles to maintain its position above the pivotal $90,000 level, according to data from TradingView.
Several factors are contributing to the declining momentum of Bitcoin, particularly the outflows from US spot Bitcoin exchange-traded funds (ETFs). Ryan Lee, the chief analyst at Bitget Research, highlighted significant selling pressure due to institutional investors withdrawing from the market in light of macroeconomic uncertainties and shifting risk preferences.
Additionally, the US spot Bitcoin ETFs have registered their fourth consecutive week of net outflows, accumulating over $2.6 billion in losses during the last week of February, as indicated by Sosovalue data. Analysts note that beyond ETF outflows, macroeconomic developments, including new tariff announcements from President Trump, are amplifying investor concerns about inflation and economic stability, which tilt preferences towards safer assets.
Despite these challenges, analysts express optimism about Bitcoin’s long-term price trajectory, projecting a potential increase to between $160,000 and $180,000 by late 2025. Iliya Kalchev, dispatch analyst at Nexo, suggested that upcoming tariff announcements might alleviate some fears associated with global trade tensions, which have negatively impacted both cryptocurrencies and traditional equities in the wake of recent tariffs.
Kalchev indicated that long-term optimism prevails despite short-term anxiety, particularly as US Commerce Secretary Howard Lutnick pointed to a potential announcement of reduced tariffs on Canada and Mexico. Such developments could restore investor sentiment, although trade policy uncertainty remains a concern. Furthermore, the broader cryptocurrency market continues to recover from the substantial $1.4 billion hack of Bybit, recorded as the most significant security breach in the cryptocurrency sphere.
In summary, Bitcoin’s struggle to remain above $90,000 can be attributed to significant ETF outflows as well as macroeconomic factors, particularly tariff announcements affecting investor sentiment. While analysts are optimistic about the potential for Bitcoin’s value to rise significantly in the future, concerns surrounding global trade and economic stability continue to exert pressure on the market. The cryptocurrency sector is also contending with the aftermath of a major security breach, adding to the complexity of the current market landscape.
Original Source: cointelegraph.com
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