Bitcoin slipped below $70,000 after U.S. spot exchange-traded funds recorded $227.9 million in net outflows on March 5. The reversal interrupted a three-day inflow streak that had helped stabilize the market during recent geopolitical volatility.
The pullback followed a short period of renewed institutional demand. Spot bitcoin ETFs attracted $458.2 million on March 2, $225.2 million on March 3, and $461.9 million on March 4, according to data from SoSoValue.
BlackRock’s iShares Bitcoin Trust (IBIT) led inflows during those sessions before turning negative as withdrawals returned. The group still logged just under $1 billion in net inflows between March 2 and March 5, despite the late reversal.
Are Bitcoin ETF Flows Losing Momentum Again?
Bitcoin’s recent rebound was fueled by aggressive spot buying across exchanges. Analysts at Bitfinex estimated roughly $3.5 billion in systematic market purchases since March 1, which helped push prices back above key technical levels.
The exchange also noted that the Coinbase premium turned positive after roughly 40 days in negative territory. That shift often signals stronger demand from U.S.-based traders.
But ETF flows remain a critical barometer of institutional sentiment. Bitcoin initially dropped to roughly $63,000 during the latest geopolitical shock before recovering above $70,000. At the time of writing, the asset trades near $69,925, according to data.
Analysts remain divided on the sustainability of the move. Binance Research said the market appears “watchful, not panicked,” pointing to moderate leverage and funding rates near the lowest levels since 2023.
Matt Mena, crypto research strategist at 21Shares, said recent price action has revived the narrative of bitcoin as a macro hedge. The asset followed gold’s rally during the crisis, suggesting some investors are exploring a “flight-to-safety” role.
Still, other analysts urge caution. Nicolai Sondergaard, research analyst at Nansen, noted bitcoin has spent weeks trading between roughly $60,000 and $71,000 without establishing a sustained breakout. Could the latest move simply reflect a temporary relief rally rather than a durable trend shift?
Macro forces may ultimately determine the next direction. QCP Capital analysts said rising oil prices and broader market volatility continue to influence crypto sentiment.
With leveraged long positions clustering around the $70,000 level, Bitfinex warned that a sharp downside move could still test support near $66,000 if volatility intensifies. The next catalyst may arrive with upcoming U.S. payrolls data, inflation readings, or further geopolitical developments.
