Bitcoin’s recent rally past $90,000 was short-lived, as macroeconomic concerns and institutional sell-offs weighed on the market. After briefly touching $95,000 on March 2, Bitcoin formed a double-top pattern at $94,200, a bearish signal suggesting an imminent decline.
By March 3, BTC bottomed out at $81,400 and has since struggled to reclaim the $90K level, according to TradingView data.
Institutional Outflows & Economic Uncertainty Pressure Bitcoin
Several factors are driving Bitcoin’s decline, with US spot Bitcoin ETFs seeing four consecutive weeks of net outflows. According to Bitget Research analyst Ryan Lee, institutional investors have pulled back, likely due to growing macroeconomic uncertainties.
Data from Sosovalue shows that Bitcoin ETFs lost over $2.6 billion in net outflows during the last week of February, increasing selling pressure.
Beyond ETFs, US tariff policies have added to market uncertainty. Former President Trump’s new tariff proposals have sparked inflation fears, prompting investors to shift toward safer assets instead of riskier ones like Bitcoin.
Can Bitcoin Regain Bullish Momentum?
Despite the current slump, analysts remain optimistic about Bitcoin’s long-term trajectory. Price forecasts for late 2025 range between $160,000 and $180,000, suggesting strong upside potential in the coming months.
Trade policy uncertainty may ease next week, according to Iliya Kalchev from Nexo. The US Commerce Secretary hinted at a potential deal to reduce tariffs on Canada and Mexico, which could improve investor sentiment.
Meanwhile, the crypto market is still recovering from the $1.4 billion Bybit hack on Feb. 21, the largest hack in crypto history. This event has further contributed to the market’s cautious stance.
With Federal Reserve rate cuts on the horizon, could Bitcoin stage a comeback rally?
