Bitcoin Faces Challenges Near $90K Amid ETF and Tariff Concerns

Bitcoin continues to face challenges as it struggles to recover past the $90,000 milestone, with many institutional investors stepping back due to growing macroeconomic uncertainties. These uncertainties include the implications of trade tariffs announced by former President Trump.

Recently, Bitcoin (BTC) experienced a brief surge, climbing nearly 10% to exceed $95,000 on March 2. However, this rally failed to sustain itself, as it formed a double-top pattern around the price level of $94,200, indicating a potential decline ahead.

By the following day, Bitcoin had retraced to approximately $81,400, and since then, it has been battling to stay above the critical threshold of $90,000, according to data from TradingView.

BTC/USD, 1-day chart, double top. Source: TradingView

Several contributing factors have led to this decline in Bitcoin's value. According to Ryan Lee, the chief analyst at Bitget Research, the heavy outflows from spot Bitcoin exchange-traded funds (ETFs) have intensified the selling pressure.

Lee noted, "Significant outflows from spot Bitcoin ETFs have amplified selling pressure, as institutional investors pulled back, likely reacting to macroeconomic uncertainties and shifting risk sentiment."

The situation looks concerning as US spot Bitcoin ETFs have recorded their fourth consecutive week of negative net outflows, with over $2.6 billion in cumulative outflows observed during the last week of February, as reported by Sosovalue.

Bitcoin ETF net flows, weekly chart. Source: Sosovalue

Macroeconomic factors are also putting pressure on Bitcoin's price. Lee mentioned, "New tariff announcements from President Trump have heightened concerns regarding inflation and economic stability, prompting investors to prefer safer assets over riskier investments like Bitcoin."

However, despite the current challenges, many analysts remain optimistic about Bitcoin's future price trajectory for late 2025, with projections suggesting it could reach between $160,000 to above $180,000.

Related: Rising Bitcoin Activity Hints at Market Bottom, Potential Reversal

Potential Relief from US Tariff Concerns

Concerns regarding a potential global trade war may see some alleviation with upcoming announcements, as indicated by Iliya Kalchev, an analyst at the digital asset investment platform Nexo. He stated that the imposition of US tariffs has impacted crypto markets since they went into effect, leading to declines in both digital assets and traditional stocks.

Kalchev added, "However, long-term optimism has prevailed over short-term worries as US Commerce Secretary Howard Lutnick mentioned that a deal to reduce tariffs on Canada and Mexico could be announced soon."

Related: Bitcoin Price Risks Correction to $72K as Investor Sentiment Weakens

Despite the uncertainty surrounding trade policies keeping market sentiment cautious, the increased likelihood of Federal Reserve rate cuts might suggest a possible turnaround for the cryptocurrency markets.

Meanwhile, the broader crypto space is still recovering from a significant incident involving the $1.4 billion hack of Bybit on February 21, marking the largest security breach in the history of cryptocurrency.

Magazine: SCB Tips $500K BTC, SEC Delays Ether ETF Options, and More: Hodler’s Digest, Feb. 23 – March 1

Bitcoin, ETF, Tariffs