Bitcoin Drops Slightly Amid Trump Tariff Uncertainty

The cryptocurrency struggles to regain its bullish momentum as investors withdraw thousands of BTC from exchanges.

The price of Bitcoin registered a slight decline of 0.55%, closing at $86,909, amid a cautious market due to President Donald Trump's new tariffs on automobiles. Although BTC broke above the 200-period moving average, it still faces resistance at $88,900, as investors withdraw their funds en masse from centralized exchanges, signaling long-term accumulation.

Bitcoin faces a key moment: if it manages to break through the resistance at $88,900, it could head towards $95,000 and regain bullish sentiment. / TradingView

Market on Hold: Trump Tariffs Hit Confidence

Uncertainty surrounding US trade policies kept Bitcoin in a sideways range this week. Trump confirmed the imposition of tariffs on vehicles, which generated nervousness in financial markets, including crypto. Although BTC managed to escape a bearish rally over the past 15 days, its price remains below the 50-period moving average ($88,900), acting as key resistance. Trading volume, below the 25-day average, reflects market indecision.

Massive Accumulation: Investors Withdraw 23,000 BTC from Exchanges

According to data from Time Chain Index, 23,000 BTC have been withdrawn from centralized exchanges since March 19, reducing the balance from 3,652,563 BTC to 3,629,565 BTC. This movement suggests strong long-term confidence, as investors prefer to store their cryptocurrencies in self-custody wallets rather than selling.

Futures and Options: Conflicting Signals?

• Futures: Open interest fell 3.04% in 24 hours, reaching $54.67 billion, indicating caution among traders.
• Options: On the other hand, open interest in BTC options reached $36.52 billion, its highest level since January 31, with 64.05% of contracts focused on bullish positions.

Bitcoin ETFs: Eighth Day of Net Inflows

Bitcoin ETFs recorded their eighth consecutive day of net inflows, totaling $89.6 million this Wednesday. Since Monday, the positive flow has accumulated nearly $200 million, reinforcing institutional demand.

Recovery or Further Decline?

Bitcoin faces a key moment: if it manages to overcome the resistance at $88,900, it could head towards $95,000 and regain bullish sentiment. However, macroeconomic uncertainty and low volume keep the market on tenterhooks.

Meanwhile, the strong accumulation of BTC off exchanges and interest in options suggest that large investors are preparing for a significant move.

Disclaimer: This information does not constitute financial advice. Cryptocurrencies are volatile; please conduct your own research before investing.