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Crypto World

Bitcoin (BTC) Price Recovers to $68K as Institutional Money Floods In

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Bitcoin (BTC) Price

Key Takeaways

  • BTC recovered to approximately $68,000 following a weekend decline to $63,000
  • Bitcoin ETFs attracted $1.45 billion in aggregate net inflows across five consecutive sessions
  • Short liquidations primarily fueled the rebound rather than new long positioning
  • Technical indicators improved: RSI increased from 36 to 41, while volume surged from $6.6B to $9.6B
  • Betting platforms indicate reduced probability of BTC reaching $65K or $60K in March

Bitcoin staged a notable recovery on March 4, pushing back toward the $70,000 level and settling near $68,000 during Hong Kong trading hours.

Bitcoin (BTC) Price
Bitcoin (BTC) Price

This upward movement came after a volatile weekend that saw BTC plunge to approximately $63,000, with Middle Eastern geopolitical tensions cited as the primary catalyst.

According to market maker Enflux, the price rebound stemmed largely from forced short liquidations. Bearish traders who anticipated further downside were compelled to close their positions when escalating conflict failed to materialize.

“The market is not pricing catastrophe, but it is not pricing resolution either,” Enflux communicated in correspondence with CoinDesk.

Cryptocurrency markets typically react more swiftly to geopolitical developments than conventional financial markets. Enflux characterized Bitcoin as functioning like a “pressure valve” for capital flows during periods of heightened uncertainty.

Institutional Capital Supports Price Floor

Institutional accumulation has emerged as a critical stabilizing force. Bitcoin spot ETFs collectively accumulated approximately $1.45 billion in net inflows throughout the previous five trading sessions.

In a March 2 conversation, Bitwise Chief Investment Officer Matt Hougan revealed that numerous institutional allocators view recent price weakness as an attractive entry point. He referenced one prospective investor who committed $11 million following a two-year evaluation period with Bitwise.

“They’re not surprised that crypto is volatile,” Hougan explained. “They’ve been waiting for an entry point.”

Hougan highlighted that Bitwise’s typical institutional client requires an average of eight meetings before finalizing an allocation, with many conducting reviews only on a quarterly basis. He emphasized that what appears as reluctance often reflects standard institutional due diligence procedures.

As of the fourth quarter, three out of four leading wirehouses now have authorization to proactively present Bitcoin investment opportunities to their client base.

Blockchain Metrics Reveal Measured Optimism

Glassnode analytics indicate gradual improvement, though decisive bullish momentum remains absent.

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The Relative Strength Index for Bitcoin climbed to 41 from the previous week’s reading of 36. However, it continues trading beneath the critical 50 threshold that would confirm buyer dominance.

Daily trading volume expanded to $9.6 billion from $6.6 billion, while spot market order flow has achieved greater equilibrium between buyers and sellers.

Futures markets continue displaying seller predominance over buyers, and funding rates for leveraged long positions have declined.

Prediction market data reinforces the cautious sentiment. The likelihood of Bitcoin declining to $65,000 during March decreased by 11 percentage points to 73%. Similarly, the probability of reaching $60,000 dropped 10 points to 41%.

A corresponding Polymarket contract measuring whether Bitcoin touches $60,000 before reaching $80,000 declined 12 points to 61%.

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At the time of publication, BTC was changing hands at $66,360.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class