Bitcoin (BTC) price extended its recovery Monday, climbing above $88,000, as a confluence of macroeconomic and institutional factors boosted market sentiment.
BTC traded at $88,599 at press time, up 4.24% in 24 hours.
The rally followed last week’s 4.25% rebound and came as open interest surged and ETF inflows returned.
According to CryptoQuant, total open interest crossed $32 Billion, while CoinGlass reported a $614.6 Million jump in BTC-USDT futures on Binance during early trading.
CoinGlass noted in a tweet, “About 7,000 BTC open interest was added on Binance futures,” suggesting increased trader exposure and imminent volatility.
Arthur Hayes Sets BTC at $110K Target—But Warns of Retrace
BitMEX co-founder Arthur Hayes predicted that Bitcoin could reach $110,000 before retracing to $76,500.
In a post on X, Hayes said macroeconomic tailwinds—especially the Federal Reserve’s dovish tone and President Donald Trump’s flexible tariff stance—could push BTC to new local highs.
“The Fed will shift from quantitative tightening to quantitative easing,” Hayes claimed, expecting liquidity to drive BTC demand. He also downplayed the long-term impact of U.S. tariffs, calling them “temporary” disruptions to broader price trends.
Hayes suggested that Bitcoin may eventually target $250,000 but emphasized the likelihood of a pullback after the $110K level.
Bitcoin ETF Inflows Return as Strategy Buys More BTC
Institutional appetite showed signs of recovery last week. According to CoinGlass, Bitcoin spot ETFs recorded $744.30 Million in net inflows after posting $830.5 Million in outflows the previous week.
Meanwhile, crypto firm Strategy acquired $584 Million in BTC on March 24, raising its holdings to 506,137 BTC.
The company used proceeds from 1.97 million share sales and a broader $21 Billion stock issuance program.
Critics warn Strategy’s aggressive accumulation may be propping up BTC above $80,000. A funding shortfall or stock issuance pause could pressure prices.
Still, ETF inflows suggest broader investor interest may be returning.
BTC Price Faces Resistance at $89K as Bulls Test Key Levels
Despite Monday’s upside, BTC price continues to struggle near critical resistance.
According to Ali Martinez, BTC faces a “key resistance cluster at $89,000,” where the 50-day moving average meets a descending trendline.
Rekt Capital added that Bitcoin is testing the 21-week EMA as support. “Reclaim the 21-EMA as support and Bitcoin will be able to breakout to ~$93,500,” the analyst posted on X.
Although BTC price hit an intraday high of $88,804 Monday, it failed to hold above $88,000 during previous sessions. The March 3 daily close at $92,000 remains a key level for bulls.
Stablecoin Reserves Surge as Traders Eye Fresh Liquidity
On-chain data also points to bullish undercurrents. CryptoQuant reported that Binance’s ERC-20 stablecoin reserves hit an all-time high of $31 Billion.
Rising stablecoin balances often signal incoming buy pressure as traders prepare to enter markets.
Coupled with rising open interest, this suggests liquidity may support further upside—but also raises risks.
“Leverage-driven pumps increase liquidation risk,” CryptoQuant warned. If the rally loses steam, overexposed positions could trigger cascading sell-offs.
Macro Factors Remain in Focus for BTC Price
Economists expect the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, to rise by 2.7% in February.
If confirmed, this would support Fed Chair Jerome Powell’s recent statements on transitory inflation and reinforce bets on rate cuts in 2025.
Trump’s reported plan to soften some tariffs ahead of April 2 also lifted equities.
S&P 500 futures jumped 1.5% on March 24, further easing fears of a full-scale economic slowdown.
BTC Price Eyes $92K—But Momentum Remains Fragile
While Bitcoin appears well-positioned to challenge $92,000, its momentum remains fragile.
Concerns about recession, excessive AI stock valuations, and U.S. federal spending cuts continue to weigh on broader risk markets.
Bitcoin’s short-term path hinges on ETF demand, macro policy shifts, and leveraged trader behavior.
As liquidity builds and open interest climbs, volatility could spike in either direction.
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