Bitcoin (BTC) hovers around $82,586 on Thursday this week, with the US CPI data for February, which came in weaker than expected on Wednesday. Market participants await the US Producer Price Index data for February and preliminary weekly jobless claims, looking for more economic indicators on Thursday. Moreover, the Crypto Quant report highlights Weekly highlights the possibility of Bitcoin entering the beginning of a bear market.
Bitcoin shows slight recovery, as US CPI data shows lower inflation.
Bitcoin rose slightly on Wednesday, closing above $83,680. This modest recovery was boosted by US consumer price index data, which showed headline and core inflation slowed faster than expected in February. The weaker inflation report has reinforced speculation that the US Federal Reserve may cut interest rates sooner than expected, supporting a rebound in prices of risky assets such as Bitcoin.
However, the uncertainty surrounding US President Donald Trump’s aggressive trade tariffs is fueling fears of a potential economic slowdown, pushing investors towards traditional safe-haven assets rather than riskier assets. This puts US spot Bitcoin ETFs on track to record their first wave of net outflows in two months.
Suppose inflation is low and jobs are weak. In this case, the odds of a rate cut by the Federal Reserve increase, boosting riskier assets by boosting risk appetite, and vice versa for higher inflation. It ranks third in terms of cumulative inflows and fourth in terms of net assets with a value of US$3.89 billion.
Therefore, market participants await the US producer price index data for February, on Thursday, and weekly jobless claims, for more economic indicators.
Bitcoin Funds Experience Inflows after Big Losses
Bitcoin ETFs have seen a slight recovery after a long wave of outflows, with net inflows reaching $13.33 million on March 12.
However, recent market exits exceeded US$1.5 billion since March 3, resulting in funds recording a net loss of US$727.09 million during the week.
This marks the fifth consecutive week of outflows, totaling $5.09 billion, putting US spot Bitcoin ETFs on track to record their first wave of net outflows in two months.
ARK 21Shares Bitcoin ETF (ARKB) topped the list of funds with net inflows of US$82.6 million, totaling US$2.55 billion. It ranks third in terms of cumulative inflows and fourth in terms of net assets with a value of US$3.89 billion.
It was followed by the Grayscale Bitcoin Mini Trust with inflows of $5.51 million, bringing total inflows to $1.09 billion, and total net assets to $3.34 billion, ranking fifth.
BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest outflows, with a loss of $47.05 million. Despite this, IBIT remains the dominant fund, with total net inflows of $39.39 billion, and total assets of $47.02 billion.
Invesco Galaxy Bitcoin ETF (BTCO) lost $12.41 million, bringing total inflows to $115.37 million, and total net assets to $455.15 million, ranking tenth and ninth, respectively.
The Grayscale Bitcoin Trust (GBTC) recorded outflows of $11.81 million. GBTC remains the worst performer, with cumulative net outflows of $22.49 billion and total net assets of $16.09 billion.
The WisdomTree Bitcoin Trust (BTCW) lost $3.51 million, with cumulative inflows of $118.69 million and net assets of $209.38 million, ranking ninth and eleventh respectively.
Gold vs Bitcoin: Which is a Safe Haven in 2025?
As financial markets enter uncertainty in 2025, investors are renewing the debate over which financial assets are considered safe havens: gold or Bitcoin? Recent price movements have fueled this debate. While the price of Bitcoin hovered around $81K after a slight decline of 2.6%, the price of gold surpassed $2,917, reflecting a traditional trend towards stability amid economic concerns.
Mixed Market Performance: A Look at Reality
Despite Bitcoin’s reputation as “digital gold,” its recent market behavior suggests a different story. Since President Trump’s inauguration in January, Bitcoin has lost 25% of its value, even as his administration seeks to clarify regulations and create a strategic reserve of Bitcoin. In contrast, the value of gold strengthened as investors looked for a safe haven from inflation fears and economic turmoil.
Mina Theodoro, co-founder of Coinstasch, explains: “Bitcoin is still seen more as a macroeconomic sensitive asset than a real hedging tool.” This is in line with broader market trends, where the price of bitcoin continues to track risky assets such as tech stocks rather than being a defensive investment.
Historically, gold has been the asset of choice in times of financial hardship. During the market crash due to the COVID-19 pandemic, gold reached new record highs, confirming its position as a trusted store of value. Meanwhile, the price of Bitcoin fell nearly 50% in a single day before rebounding, highlighting its volatility rather than stabilization.
While Bitcoin offers advantages such as decentralization and ease of transfer, its unpredictability remains a major concern for conservative investors. Mark Herriart of Xerocab sees long-term potential, but acknowledges the risks: “Bitcoin declines often present great buying opportunities, but stability remains a major obstacle.”
