BTC in Focus: The Bitcoin Act and ETF Flows
XRP’s move toward $2.5 coincided with bitcoin (BTC) breaking above the crucial $85k level. Rising institutional demand through BTC-spot ETFs has fueled a rebound from the March 11 low of $76,642.
On Friday, March 21, the US BTC-spot ETF market extended its inflow streak to six sessions, its longest since January. Waning institutional demand in February and early March contributed to the BTC drop from its record high to the March 11 low. Sentiment toward President Trump’s Executive Order establishing a Strategic Bitcoin Reserve (SBR) pressured BTC demand.
However, sentiment could shift significantly in BTC’s favor if Congress passes the Bitcoin Act. Senator Cynthia Lummis reintroduced the Bitcoin Act on March 11. If passed, the bill would authorize the US government to acquire one million BTC over five years, with a 20-year mandatory holding period.
Bitcoin Price Scenarios: Key Levels to Watch
On March 23, BTC rose 2.74%, reversing Saturday’s 0.27% dip, closing at $86,117.
Potential BTC price scenarios:
- Bearish Scenario: Renewed trade tensions, recession concerns, political resistance to the Bitcoin Act, or ETF outflows could drag BTC toward $70,000.
- Bullish Scenario: Strong US economic data, easing geopolitical risks, legislative progress, and continued inflows may drive BTC toward $109,312.
