Bitcoin's New Drop Reinforces Bearish Pressure in the Cryptocurrency Market

For best results when printing this announcement, please click on link below:As of March 4, cryptocurrencies continued their downward trend, deepeninglosses after the widespread market sell-off in the previous session. Not evenDonald Trump's announcement of a cryptocurrency reserve—including Bitcoin,Ethereum, Cardano, Ripple, and Solana—was enough to sustain optimism in thesector.Bitcoin has dropped more than 3.5%, while Cardano and Ripple have declined by5% and 8%, respectively. Ethereum is also down 3% on the day. Some of the keyfactors impacting the market include the low demand for Bitcoin ETFs and thecapitulation of short-term holders, who are now facing average losses of 8%.Bleak Outlook for a Strong ReboundWall Street has also had a rough time, with the S&P 500 recording itsweakest session of the year yesterday. Additionally, concerns are mountingover Bitcoin's response to a potential economic slowdown in the U.S.,especially as inflation expectations rise. The massive sell-off of assets tiedto the "Trump Trade" and the tech sector has also hit riskier assets likeBitcoin and altcoins.Investors are closely watching recent U.S. economic data, which indicatessigns of weakening. The ISM Manufacturing report showed a decline in ordersand employment, along with rising prices. If risk aversion sentiment persists,Bitcoin could once again test recent lows around $78,000, with the risk ofdropping further to the $72,500 - $73,000 range, where Glassnode data suggestsstronger volume accumulation.Technical Analysis and ETF OutflowsFrom a technical perspective, Bitcoin has fallen below the key support levelof the 200-day EMA, signaling increased selling pressure. Additionally,significant Bitcoin outflows have been recorded in ETFs, particularly inBlackRock's IBIT. The declining capital inflows into these investment vehiclesput the market in a delicate position, as it has largely relied on themomentum generated by Bitcoin ETFs in the U.S.Despite a 30% drop from December highs, total Bitcoin holdings in ETFs havenot decreased drastically, indicating that major investors are still holdinglong-term positions despite recent volatility.