Bitcoin’s recent rebound quickly lost momentum on Friday, as a sharp sell-off wiped out most of the week’s gains.
Investor sentiment soured due to looming concerns about President Trump’s upcoming tariffs set for April 2, coupled with unexpectedly strong core PCE data. Bitcoin, under mounting selling pressure below $85,000, now risks concluding its worst quarter since 2018, leading analysts to predict it could drop below the crucial $80,000 threshold by the end of March.
Bitcoin’s price took a steep dive in the last few hours, resulting in nearly $90.6 million in liquidations, with the bulk coming from long positions. This downward movement puts Bitcoin on course for its worst Q1 since 2018, with data from CoinGlass showing a nearly 12% decline in Q1 2025—comparable to the 10.8% drop in Q1 2020 but significantly less severe than the 49.7% crash seen in 2018.
Market participation also shows signs of cooling. Open interest in Bitcoin dropped by about 4.5% in the last 24 hours, approaching a low near $54 billion. This decline suggests that traders are becoming more cautious, likely contributing to reduced volatility in the short term. Additionally, the long/short ratio has fallen to 0.6051, signaling a bearish shift as 62.3% of traders now anticipate further declines.
Compounding this bearish outlook, Bitcoin ETFs saw significant outflows, further pressuring the asset. Fidelity’s FBTC fund alone experienced $93.16 million in outflows on Friday, breaking a 10-day streak of inflows. With a slight uptick in trading volume across U.S. Bitcoin ETFs, totaling about $2.22 billion on Friday, the market appears increasingly uncertain about Bitcoin’s near-term direction.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/bitcoins-sell-off-intensifies-putting-march-recovery-in-jeopardy/