TLDR
- BTC reached a peak of $75,991 before retracing to approximately $74,291 on Tuesday
- U.S. spot Bitcoin ETFs have seen continuous inflows for six consecutive sessions, accumulating $962.8 million from March 9 onward
- Short position liquidations totaling $485.6 million within a 24-hour period contributed to upward price momentum
- Rising tensions involving the U.S., Israel, and Iran continue to influence market psychology
- Market participants are closely monitoring the Federal Reserve’s upcoming interest rate announcement scheduled for Wednesday
Bitcoin has experienced significant price swings in recent trading sessions. The leading cryptocurrency surged to a local peak of $75,991 before experiencing a correction that brought prices down to approximately $74,291 during early Tuesday hours.
This price movement coincided with substantial forced liquidations across the derivatives market, with total cryptocurrency liquidations reaching approximately $609 million over the past 24 hours. Data from Coinglass reveals that short positions accounted for $485.6 million of these liquidations.
Market observers attribute the rapid price appreciation to this short squeeze phenomenon. However, there’s caution about its sustainability.
“Price movements driven by squeezes tend to be temporary unless accompanied by genuine sustained demand, typically dissipating within days to several weeks,” explained Dominick John, an analyst with Zeus Research.
Consistent ETF Demand Offers Foundation
Despite market volatility, institutional demand through spot Bitcoin ETFs remains robust. Monday represented the sixth consecutive trading session with positive flows into U.S.-listed Bitcoin ETF products, adding $199.4 million in net inflows.
BlackRock’s iShares Bitcoin Trust (IBIT) dominated contributions with $139.4 million in inflows. Fidelity’s Wise Origin Bitcoin Fund contributed an additional $64.5 million.
From March 9 through the current period, cumulative net inflows into these investment vehicles have totaled $962.8 million. During this timeframe, Bitcoin has appreciated by 12.5%, climbing from $65,960 to approximately $74,250.
Research analysts at Presto Research highlighted these persistent inflows, along with ongoing institutional and corporate accumulation, as fundamental catalysts supporting the rally. Last week alone, U.S. spot Bitcoin ETFs attracted $767.3 million in net inflows, marking the third straight week of positive capital flows.
Geopolitical and Macroeconomic Headwinds Persist
Escalating tensions involving the United States, Israel, and Iran have created uncertainty across financial markets. Oil prices surged back above the $100 threshold on Tuesday, with Brent crude reaching $103 and WTI hitting $96.03.
Rising energy costs have reignited inflation worries, influencing asset allocation decisions across traditional and digital markets alike.
On Monday, President Trump urged international cooperation to resolve disruptions affecting the Strait of Hormuz. Iran’s restrictions on shipping through this critical waterway, which handles approximately 20% of global oil transportation, have created supply concerns.
Blockchain intelligence provider Santiment observed that speculation regarding potential diplomatic breakthroughs among the U.S., Iran, and Israel helped propel Bitcoin above $74,400—its highest level in six weeks.
The Crypto Fear & Greed Index increased by five points to 28 on Tuesday, marking its first exit from “Extreme Fear” territory since the final days of January.
The Federal Reserve’s policy announcement is scheduled for Wednesday. While consensus expectations point to unchanged interest rates, market participants are paying close attention to any commentary regarding inflation trajectories.
Spot Ethereum ETFs also demonstrated strong performance with $160.8 million in weekly inflows, as ETH appreciated 3.28% to reach $2,315.
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