$90K Bitcoin struggle amid ETF and tariff concerns
Bitcoin's (CRYPTO:BTC) recent attempt to breach the $90,000 threshold has been met with resistance, largely due to macroeconomic uncertainties and significant outflows from Bitcoin exchange-traded funds (ETFs).
The cryptocurrency experienced a brief rally above $90,000, reaching nearly $95,000 on March 2, but this was short-lived as it formed a double-top pattern, indicating a potential price decline.
Bitcoin's struggle to maintain its price above $90,000 is attributed to several factors, including ongoing macroeconomic uncertainties and a notable reduction in institutional investments in cryptocurrency markets.
Ryan Lee, chief analyst at Bitget Research, noted that significant outflows from spot Bitcoin ETFs have increased selling pressure, as institutional investors pull back in response to macroeconomic uncertainties and shifting risk sentiment.
The US spot Bitcoin ETFs have seen their fourth consecutive week of net negative outflows, with over $2.6 billion in cumulative net outflows recorded during the last week of February.
Beyond ETF inflows, macroeconomic factors such as new tariff announcements from President Trump have heightened concerns about inflation and economic stability, prompting investors to favor safer assets over riskier investments like Bitcoin.
Despite these challenges, analysts remain optimistic about Bitcoin's long-term price trajectory, with predictions ranging from $160,000 to above $180,000 for late 2025.
Iliya Kalchev, dispatch analyst at Nexo, suggests that some of the concerns related to a potential global trade war may be alleviated with upcoming announcements, potentially offering relief to crypto markets.
The implementation of US tariffs has weighed on both crypto and traditional markets, but indications of a deal to reduce tariffs on Canada and Mexico could help stabilise investor sentiment.
At the time of reporting, the Bitcoin (BTC) price was $88,345.02.
