Key Points
- Bitcoin fell to $83.04, continuing its downward trend, with a low of $81.88 recorded on the latest session.
- Investor sentiment remains weak, with ETF outflows and macroeconomic concerns weighing on crypto markets.
Bitcoin Declines Below $85K, Testing Multi-Week Lows
Invesco Galaxy Bitcoin ETF (BTCO) extended its losses on Wednesday, trading at $83.04 after hitting an intraday low of $81.88, marking a continued decline from recent highs. The cryptocurrency remains under pressure amid broader macroeconomic concerns, weak sentiment, and ongoing regulatory uncertainties.
Picture: BTCO struggles near $83.04 after extended bearish momentum, as seen on the VT Markets app
The bearish momentum follows several sessions of steady declines, with BTC failing to hold the $86K resistance level. The MACD indicator remains below the signal line, reinforcing the downward bias. Bitcoin has now fallen over 15% from its recent high of $99.26, recorded on February 21, reflecting fading momentum.
ETF Outflows and Weak Institutional Demand
The latest pullback aligns with a trend of outflows from Bitcoin-backed exchange-traded funds (ETFs), which have seen decreased institutional participation.
This shift in sentiment comes despite an initial wave of optimism following the SEC’s approval of spot Bitcoin ETFs in January.
According to market data, ETF redemptions have contributed to the recent selling pressure, with major funds witnessing net outflows for the fourth consecutive week.
Regulatory Uncertainty and Trump’s Tariff Plans Weigh on Sentiment
Major financial trends continue to influence risk assets, including cryptocurrencies. Investors remain cautious as U.S. President Donald Trump reaffirms his tariff plans, raising concerns over global economic stability. The latest 25% tariff proposal on Canadian and Mexican imports has fueled uncertainty across financial markets, leading to a broader risk-off sentiment.
Adding onto this, the recent $1.5 billion hack affecting Ether (ETH) has dented confidence in the crypto ecosystem. The breach at Dubai-based Bybit exchange, which saw hackers drain significant holdings, has amplified security concerns in the industry.
Traders monitoring Bitcoin should be mindful of key technical indicators and broader global market influences that could shape its trajectory. The resistance level around $90.66 suggests that upward movement may face selling pressure, while the MACD indicator at -1.05 signals a bearish trend—though a crossover above the signal line could indicate a shift in momentum.
