Bitcoin Faces Turbulence Near $90K as Tariff Concerns Rattle ETF Investors | 2025
Bitcoin Faces Turbulence Near $90K
Bitcoin ETFs are currently limiting BTC’s recovery as institutional investors pull back, reacting to macroeconomic uncertainties, including Trump’s trade tariffs. The cryptocurrency’s recent rally above the critical psychological threshold of $90,000 has proven to be short-lived. Analysts attribute this downturn to ongoing macroeconomic uncertainties and a significant reduction in institutional investments in cryptocurrency markets.
Recent Price Movements
On March 2, Bitcoin staged a near 10% recovery, climbing above $95,000 before forming a double-top chart pattern around $94,200 on the daily chart. This setup typically indicates an imminent price decline, raising concerns among investors. Multiple key factors are contributing to the Bitcoin slump, particularly the performance of US spot Bitcoin exchange-traded funds (ETFs), according to Ryan Lee, chief analyst at Bitget Research.
Impact of US Spot Bitcoin ETFs
The US spot Bitcoin ETFs have experienced their fourth consecutive week of net negative outflows, with over $2.6 billion worth of cumulative net outflows recorded during the last week of February. This trend has raised alarms among investors, as it suggests a lack of confidence in the cryptocurrency market.
Macroeconomic Uncertainties
Concerns related to a potential global trade war may see some alleviation with upcoming announcements, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo. The implementation of US tariffs has significantly weighed on crypto markets since going into effect, leading to declines in both digital assets and traditional equities. Kalchev noted that trade policy uncertainty will likely keep market sentiment guarded.
Potential for Market Recovery
Despite the current challenges, the increased likelihood of Federal Reserve rate cuts may suggest a potential turnaround for crypto markets. Analysts are cautiously optimistic that easing monetary policy could provide the necessary support for Bitcoin and other cryptocurrencies to regain their footing.
Investor Sentiment and Future Outlook
As Bitcoin struggles to maintain its value near $90K, investor sentiment remains cautious. The combination of ETF outflows and macroeconomic uncertainties has created a challenging environment for Bitcoin’s recovery. However, some analysts believe that if the Federal Reserve implements rate cuts, it could provide a much-needed boost to the cryptocurrency market.
In conclusion, while Bitcoin’s recent price movements have been tumultuous, the potential for recovery remains. Investors are advised to stay informed about macroeconomic developments and the performance of Bitcoin ETFs, as these factors will play a crucial role in shaping the future of Bitcoin and the broader cryptocurrency market. For more details, you can read the original article here.