ETF Absorbs Over $1.1 Billion Yet Struggles to Rescue the Market? Powell and Oil Prices Team Up to Put Pressure On, Bitcoin Breaks Key Support

Gate News, March 19 — Despite nearly $1.16 billion flowing into spot Bitcoin ETFs over the past seven trading days, Bitcoin prices have yet to maintain strength, indicating that macroeconomic conditions are exerting clear pressure on market sentiment. Data shows that Bitcoin, after reaching a high of approximately $75,600, fell back to around $71,000, with a single-day decline of over 4%.

Analysts point out that the key to this correction lies in the re-pricing of interest rate expectations and inflation pressures. The Federal Reserve maintained interest rates in the 3.5% to 3.75% range and raised the 2026 inflation outlook to about 2.7%. Powell emphasized that the pace of inflation decline is slower than expected, making the market more cautious about the path of rate cuts. Meanwhile, the Producer Price Index (PPI) exceeded expectations, coupled with escalating Middle East tensions, pushing oil prices above $110 per barrel and further diminishing the appeal of risk assets.

Against this backdrop, although institutions continue to allocate Bitcoin via ETFs, short-term capital flows and price performance are diverging. Rachael Lucas stated that the continuous ETF inflows reflect that institutions are viewing Bitcoin as a long-term asset rather than a short-term trading tool, indicating a shift in market structure.

Additionally, the synchronized weakness in the U.S. stock market has spillover effects on the crypto market, with the S&P 500 and Nasdaq both experiencing declines. Currently, Bitcoin’s support level around $70,000 has become a key observation zone. If upcoming employment data and manufacturing indicators further reinforce inflation expectations, prices may face additional pressure.