Bitcoin Struggles Below $85,000 Amid $945M ETF Outflows, Fed Decision Awaited
1min read Bitcoin (BTC) is currently facing significant resistance below $84,000, struggling to break above $85,000. This sluggish price action is largely attributed to the ongoing sell-off in Bitcoin spot ETFs, which have seen outflows exceeding $945 million in recent weeks. This marks the fifth consecutive week of institutional selling, adding considerable pressure on BTC.
Investor sentiment remains weak, as reflected in the Crypto Fear & Greed Index, which currently stands at 22, indicating a state of fear. The uncertainty in the market stems from multiple factors, including fears of U.S. recession risks, trade policies, and regulatory uncertainty in the crypto sector.
Despite these headwinds, Bitcoin briefly rebounded by 4.33%, driven by optimism around Senator Cynthia Lummis’ Bitcoin Act. This act suggests that the U.S. government should accumulate BTC as a strategic reserve asset, which has sparked some optimism among investors.
Bitcoin’s next major price move could be determined by the Federal Reserve’s policy decision on March 19. Investors are closely watching U.S. Retail Sales data and the FOMC meeting, as any signals of a dovish stance could boost Bitcoin. A rate cut would increase liquidity, potentially fueling BTC’s next rally. However, if the Fed maintains a strict stance, it could trigger a fresh wave of selling pressure, especially amid continued weakness in the Nasdaq.
Geopolitical tensions are also in focus. Trade policies and potential trade restrictions could further impact market sentiment. Any escalation in U.S. economic policies may influence the Fed’s next move, directly affecting Bitcoin’s trajectory.
Bitcoin’s price remains closely tied to U.S. stock market performance, particularly the Nasdaq index, which has dropped 12% in recent weeks. Historically, BTC tends to decline twice as much as Nasdaq, implying a potential 24% BTC drop to $65,000 if the tech index extends its slide. If Nasdaq declines further by 20%, Bitcoin could fall to $55,000, while a full-blown bear market in stocks—potentially a 40% Nasdaq crash—could send BTC tumbling toward $20,000.
Meanwhile, gold prices have 
