Bitcoin Holds Gains in Asia as Five-Month Losing Streak Ends, ETF Inflows Support Sentiment

Bitcoin Holds Gains in Asia as Five-Month Losing Streak Ends, ETF Inflows Support Sentiment​

Bitcoin Steady Above $68,000 After March Recovery​

Bitcoin maintained its gains in early Asian trading on Wednesday after ending a five-month losing streak with a modest rise in March. The cryptocurrency was trading just above $68,000 at 9:00 a.m. in Singapore, showing little movement on the day, while Ether held firm above $2,100.

The recovery comes after Bitcoin posted a 2.2% gain in March, marking its first monthly advance since September and raising hopes that the prolonged “crypto winter” may be nearing an end.

Geopolitical Signals Lift Risk Assets​

Market sentiment improved following comments from US President Donald Trump, who indicated that the United States could exit the Iran war within the next two to three weeks. The statement triggered a broader rally across risk assets, including equities and digital currencies.

This optimism emerged even as tensions in the region persist, with the Strait of Hormuz remaining closed, continuing to pose risks to global trade and energy markets.

Key Price Levels Remain Critical for Bitcoin​

Despite the recent gains, Bitcoin has only marginally improved from its level of around $66,500 a month ago. Analysts indicate that the cryptocurrency needs to sustain movement above the $70,000 to $72,000 range to strengthen investor confidence and confirm a more decisive upward trend.

Rachael Lucas, an analyst at BTC Markets, said markets remain cautious after prolonged uncertainty.

“Markets have been conditioned by 12 months of policy reversals,” she said. “Bitcoin’s price action tells the story: It stayed compressed in a tight range even as equity markets moved sharply on the headline.”

ETF Inflows Provide Support After Outflow Streak​

Institutional interest showed signs of recovery in March, with US-listed Bitcoin exchange-traded funds recording net inflows of $1.2 billion. This reversed a four-month period of continuous outflows and provided additional support to prices.

Bitcoin also demonstrated relative stability during March, holding steady even as equities and gold declined amid rising inflation concerns linked to higher energy prices.

Bitcoin Still Below Peak Levels​

Despite recent improvements, Bitcoin remains significantly below its previous highs. The cryptocurrency is currently about 45% lower than its all-time high of over $126,000 reached before the October selloff.

Derivatives Market Signals Caution​

Data from the crypto options platform Deribit indicates continued caution among investors. There is a concentration of more than $1.5 billion in put contracts at the $60,000 level, suggesting that traders are positioning for potential downside risk.

Outlook: Diverging Views on Bitcoin’s Next Move​

Ryan Rasmussen, head of research at Bitwise Asset Management, expressed optimism about Bitcoin’s long-term trajectory.

“Once the geopolitical and macro headwinds clear, we believe the multi-year bullish tailwinds of institutional adoption and regulatory clarity will push Bitcoin to new all-time highs,” he said. “The positive price action in March, after five months of negative prices, is a sign that investors are waking up to this, and Bitcoin is on the verge of a breakout from crypto winter.”

However, Hayden Hughes, managing partner at Tokenize Capital, cautioned that volatility could return in the near term.

“It will feel like the good times have returned,” he said. “Still, our base case is further downside for the remainder of the year caused by supply chain disruption that cannot be fixed quickly, high levels of household debt, stress in the private credit industry, and potentially other risks that we feel are not adequately priced in.”

Bitcoin’s recent recovery has improved sentiment, but market direction remains closely tied to macroeconomic developments and investor positioning.