Is the crypto market showing early signs of recovery despite ongoing ETF outflows?
Bitcoin continues to navigate choppy waters as it hovers below the $85,000 mark amid persistent institutional selling. The world's leading cryptocurrency closed at $84,399 on Saturday, showing resilience despite facing headwinds from multiple directions.
ETF Exodus Continues, But Is It Slowing Down?
The US Bitcoin spot ETF market recorded net outflows of $945.4 million for the week ending March 14, marking the fifth consecutive week of institutional investors pulling their money out. The biggest withdrawals came from:
- iShares Bitcoin Trust (IBIT): $338.1 million in outflows
- Fidelity Wise Origin Bitcoin Fund (FBTC): $307.4 million, extending its outflow streak to 7 weeks
Despite these concerning numbers, Bitcoin managed to climb 4.33% this week, suggesting that other market factors might be starting to outweigh ETF movements.
Trump's Policies: Double-Edged Sword for Crypto?
President Trump's recent economic decisions have created a mixed bag for Bitcoin investors:
- His tariff policies have sparked market volatility and recession fears
- The Executive Order designating BTC as a Strategic Reserve Asset failed to include direct purchase mandates
- These factors contributed to BTC touching a March low of $76,642 before rebounding
The Bitcoin Act: Light at the End of the Tunnel?
Senator Cynthia Lummis has reintroduced the Bitcoin Act, which could dramatically reshape Bitcoin's demand landscape. The proposed legislation calls for:
- The US government to acquire one million BTC over five years
- A mandatory 20-year holding period for these purchases
Progress on this bill could potentially trigger a significant rally, potentially pushing Bitcoin beyond its January record high of $109,312.
What's Next for Bitcoin?
Bitcoin's price action appears conflicted from a technical perspective:
- Trading below the 50-day EMA (bearish short-term signal)
- Still positioned above the 200-day EMA (bullish long-term outlook)
- RSI reading of 44.05 suggests room for further downside before reaching oversold territory
Key levels to watch:
- Resistance: $86,263, followed by $90,742
- Support: $80,000, with the March 11 low of $76,642 as critical backup
Ethereum Not Faring Much Better
Ethereum continues to show weakness, trading well below both its 50-day and 200-day EMAs. With an RSI reading of 35.28, ETH is approaching oversold territory but hasn't quite reached it yet.
Key ETH levels:
- Resistance: $2,308
- Support: March 11 low of $1,759
What do you think? Are the ongoing ETF outflows a temporary setback, or is this the beginning of a larger correction? Has Trump's stance on Bitcoin met your expectations so far?
Would you buy Bitcoin at current levels, or are you waiting for a clearer signal? Share your thoughts below!
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