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Read expert analysis on what could drive XRP to new highs here.
BTC Holds Ground Amid Tariff Uncertainty
Despite XRP’s recent losses, bitcoin (BTC) has remained relatively stable. After rebounding from its March 11 low of $76,642, BTC has traded within a narrow range. Ongoing market uncertainty, partly stemming from President Trump’s tariff proposals, has weighed on risk appetite.
The Nasdaq Composite Index ended the Thursday session down 0.53% after tumbling 2.04% on Wednesday.
BTC-Spot ETF Inflows Reflect Institutional Optimism
Institutional demand remains strong as hopes grow for Congress to pass the Bitcoin Act. Senator Cynthia Lummis reintroduced the Bitcoin Act on March 11, proposing the US government acquire one million BTC over five years with a 20-year holding mandate. If passed, the Bitcoin Act could significantly impact BTC’s long-term supply-demand balance.
The Bitcoin Act and the US BTC-spot ETF market are crucial to BTC’s supply-demand trajectory. Increasing demand through ETFs and approval for the US government to acquire and hold BTC would tilt the supply-demand balance firmly in BTC’s favor.
On March 27, the US BTC-spot ETF market reflected optimism toward Congress passing the Bitcoin Act. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $97.1 million on March 27.
- Invesco Galaxy Bitcoin ETF (BTCO) and WisdomTree Bitcoin Fund (BTCW) saw net outflows totaling $12.1 million.
- Excluding BlackRock’s iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $85.0 million on March 27, potentially extending its inflow streak to ten sessions.
Resilient institutional demand has played a pivotal role in BTC’s recent price trends. From February 10 to March 11, BTC-spot ETFs saw $5.25 billion in net outflows, dragging BTC to multi-month lows. Inflows of $949 million since March 12 have helped BTC recover toward $87,000.
Bitcoin Price Outlook: Key Scenarios
On March 27, BTC rose 0.34%, partially reversing Wednesday’s 0.54% loss closing at $87,236.
Potential scenarios:
- Bearish Scenario: Rising geopolitical or macroeconomic tensions, political pushback on the Bitcoin Act, or extended ETF outflows could pressure BTC toward $70,000.
- Bullish Scenario: Strong macro data, easing trade concerns, bipartisan backing for the Bitcoin Act, and steady ETF inflows may lift BTC toward $109,312.
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