Highlights
- The Bitcoin price rises 21% but retraces to $83818 mark.
- Trump’s crypto reserve announcement boosts the market briefly.
- March begins with Bitcoin ETF outflows of $74.19M.
The Bitcoin ETF and Bitcoin price chart experienced significant fluctuations recently, with the world’s largest cryptocurrency rising approximately 21% since Friday’s low. However, these gains were short-lived, as the BTC price retraced to $83818 when writing, shedding most of its earlier gains.
Per the daily chart, the BTC price initially surged by 11%, nearing $95,000, following U.S. President Donald Trump’s announcement on March 2. He gave an announcement regarding the plans of a strategic crypto reserve.
Initially, he mentioned that the reserve would include XRP, Solana, and Cardano. Later, he updated his statement on Truth Social to include Bitcoin, Ether, and other cryptocurrencies.
While Trump’s post provided a temporary boost to the crypto market, larger issues, such as tariffs, continue to weigh heavily on traders.
The overall economic conditions still impact cryptos, as reflected in the BTC/USD price action amid ongoing tariff uncertainty and geopolitical tensions.
However, many experts anticipated a new wave of optimism in the market, but that didn’t go in that direction. Instead, others cautioned that the situation is more complex, noting that U.S. Congress is unlikely to quickly approve the strategic crypto reserve.
Negative sentiment from the social community contributed to the rapid fading of the March 2 price gains, and Bitcoin ETF outflows persisted.
Therefore, this week will be crucial for Bitcoin ETF flows, as it remains to be seen whether sentiment will improve or not.
Keep reading to know what developments lie ahead.
March’s First Bitcoin ETF Session Saw Outflows
As per the SoSoValue, February was marked by a general sense of pessimism in Bitcoin ETF data, driven by various market factors.
However, on the last day of the month, February 28, there was a glimmer of hope as inflows were recorded after a prolonged period of outflows.
Spot Bitcoin ETFs in the U.S. attracted $94.3 Million in investments, providing a brief reprieve at the end of what had been the toughest month for crypto in three years.
This influx ended an eight-day streak of withdrawals, during which investors pulled out over $3.2 Billion from these funds as crypto prices declined.
Unfortunately, the optimism was short-lived. In the first Bitcoin ETF trading session on March 3, 2024, the data revealed outflows of $74.19 Million. These outflows were primarily attributed to BlackRock and Grayscale.
Other asset management firms like Fidelity reported no activity on that Monday, despite the recent announcement regarding a Crypto Reserve by Trump.
Amid Pessimistic Bitcoin ETF Data, What’s Next for Bitcoin Price?
In the first session of March, Bitcoin ETF data showed continued outflows. Meanwhile, the Bitcoin price (BTC/USD) remains in a downtrend too, on the daily timeframe, despite a brief rally over the weekend.
The daily candle’s failure to close above the $95K level leaves BTC/USD susceptible to further declines. Currently, Bitcoin price lost its weekend gains and was trading at $83,818.
In the short term, the 20-day EMA band pushed the price downwards. The key support level is now at $82K; if this level is breached, the next target for bearish traders could be $78,200.
Additionally, negative sentiment within the community or further pessimistic news could exacerbate the bearish trend.
On the other hand, if Bitcoin price manages to reverse and sustain a position above the $90K mark, it could spark a new wave of optimism. Otherwise, the market might enter a phase of consolidation.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
