Written by Linh Tran, Market Analyst at XS.com
BTC Drops Near $80,000 as Bitcoin Spot ETFs Face Four Consecutive Weeks of Outflows Totaling $4.5B, While Trump’s Reserve Move Disappoints.
Bitcoin traded in the red over the past weekend as Bitcoin spot ETFs continued to witness significant capital outflows. Specifically, during Friday’s trading session, total withdrawals from Bitcoin ETFs amounted to $409 million. Among them, the Grayscale Bitcoin Trust (GBTC) led the outflow trend, with a substantial amount of BTC being sold off as investors shifted to other lower-cost ETF products. This trend is putting downward pressure on BTC’s price, as the increased supply from GBTC entering the market is triggering strong selling pressure.
Last week, U.S. President Donald Trump signed an executive order establishing a “Strategic Bitcoin Reserve” to strengthen the United States’ position in the cryptocurrency sector. However, this move appears to have disappointed the crypto community and investors. The main reason for this disappointment is that the order does not include a government plan to actively purchase Bitcoin but instead focuses solely on managing Bitcoin seized from criminal and civil cases. This led to a sell-off of the cryptocurrency shortly afterward.
On Friday, the financial markets reacted to the release of non-farm payroll (NFP) data and the U.S. unemployment rate, which both fell short of expectations at 151K and 4.1%, respectively. These figures further highlighted a less optimistic economic outlook, making investors more cautious toward risk assets.
In addition to these pressures, Bitcoin is also facing negative impacts from escalating trade tensions among major economies. Although tariffs on Canada and Mexico were lifted in less than 48 hours after being imposed, recent trade tensions between the U.S. and China have continued to escalate. Both countries have been implementing retaliatory policies against each other, raising concerns about an increasingly complex trade war.
Meanwhile, geopolitical risks remain uncertain as the market awaits a meeting between senior U.S. officials, including Secretary of State Marco Rubio and National Security Advisor Mike Waltz, and their Ukrainian counterparts in Saudi Arabia this week to discuss potential peace negotiations between Ukraine and Russia. This meeting could significantly influence market sentiment. If positive developments arise, capital could flow back into risk assets, supporting BTC’s recovery.
This week, the market will focus on one of the key economic indicators—the U.S. inflation data for February. The published figures could impact the Federal Reserve’s policy outlook in the coming months, which in turn may influence short-term market trends.
