Bitcoin (BTC) News Today: Reversal Impacts Crypto Market and BTC-Spot ETF Inflows

Investors Brush Aside BTC-Spot ETF Flow Data

On Tuesday, BTC slid by 6.40%. Partially reversing an 8.02% gain from Monday, BTC ended the session at $63,837. Significantly, BTC revisited the $69,000 handle for the first time since November 2021. Investors reacted to the return to the $69,000 handle, locking in profits. BTC tumbled to a session low of $57,473 before steadying at the $63,000 handle.

BTC saw heavy selling despite the BTC-spot ETF market seeing net inflows on March 4. After seeing net outflows of $139.5 million on March 1, the BTC-spot ETF market recorded net inflows of $562.7 million on March 4.

According to BitMEX Research, iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Fund (FBTC) saw sharp increases in net inflows.

However, four BTC-spot ETFs saw net outflows, the most since the launch of the Nine on January 11. Grayscale Bitcoin Fund saw net outflows of $368.0 million. Invesco Galaxy Bitcoin ETF (BTCO), VanEck Bitcoin Trust (HODL), and WisdomTree Bitcoin Fund (BTCW) also saw net outflows on Monday.

After almost two months of trading, the BTC-spot ETF market remained a two-horse race. IBIT accounted for 49% of total net inflows (excl. GBTC flows), with FBTC accounting for 30% of total net inflows (excl. GBTC).

On Tuesday, March 5, BTC-spot ETF market volumes reflected BTC market volatility throughout the session. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared the numbers, saying,

“MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are bananas numbers for ETFs under 2mo old. IBIT, FBTC, BITB, ARKB all w record days.”

However, while volumes hit record highs, the BTC-spot ETF market is at risk of another session with net outflows.

BTC-Spot ETF Market Facing Net Outflows on Tuesday Reversal

According to early numbers from Farside Investors, the BTC-spot ETF market may see net outflows on March 5.

GBTC saw net outflows of $332.5 million, while FBTC saw net inflows fall to $125.6 million. IBIT needs net inflows of over $125.8 million, depending on BTCO flow data, to deliver net inflows for the BTC-spot ETF market.

The influence of the BTC-spot ETF market and BTC on the broader crypto market was evident on Tuesday. Dogecoin (DOGE) and shiba inu (SHIB) tracked BTC into negative territory. On Wednesday, BTC and the broader market extended losses from Tuesday.

DOGE and SHIB were down 2.14% and 9.04%, respectively. BTC was down 1.45%. DOGE slipped back to the number nine spot by market cap, while SHIB held onto the number ten spot.

There were no news events to trigger the Tuesday sell-off and Wednesday morning pullback.

Technical Analysis

Bitcoin Analysis

BTC sat above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the Tuesday high of $69,064 would support a breakout from the all-time high of $69,276 to target $70,000.

BTC-spot ETF market-related news remains a focal point.

On the other hand, a drop below the $62,000 handle would give the bears a run at the $59,176 support level.

The 14-Daily RSI reading, 66.73, suggests a BTC return to the $68,000 handle before entering overbought territory.

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH breakout from the $3,683 resistance level would bring the Tuesday high of $3,831 into play.

ETH-spot ETF-related updates need investor consideration.

However, an ETH drop below the $3,500 handle would give the bears a run at the $3,412 support level.

The 14-period Daily RSI, at 76.73, shows ETH in overbought territory. Selling pressure could intensify at the Tuesday high of $3,831.