An analyst known as Lofty argues that Bitcoin's recent jump above the $70k resistance to around $71k and then $73k resembles a 2022 bull trap pattern that preceded a steep decline. He claims the largest cryptocurrency could retreat to $45k within 12 days, although other observers view such a deep correction as unlikely and note that even a pullback toward $65k could still qualify as a trap.

On March 5, U.S. spot Bitcoin ETFs saw net redemptions of $227.9 million following a prior session of strong inflows. Ethereum funds registered $90.9 million in outflows, while Solana ETFs lost $6 million, as Bitcoin traded around the $71,000 area and broader crypto markets retreated. The largest withdrawals came from products issued by BlackRock and Fidelity, underscoring choppy institutional demand for crypto ETFs.

Vancouver city staff have concluded Bitcoin is not an eligible municipal investment under the Vancouver Charter and advised council to halt Mayor Ken Sim's 2024 proposal to establish a Bitcoin reserve, ahead of a Tuesday vote. The initiative, originally passed with six votes in favor and two against, aimed to diversify the city's financial reserves and use Bitcoin as an inflation hedge, but faces renewed scrutiny amid the cryptocurrency's price decline.

Blockchain analytics firm CryptoQuant reports that Bitcoin reserves on centralized exchanges have fallen to roughly 2.7 million BTC, the weakest exchange liquidity since November 2018. During prior bull cycles between 2020 and 2022, balances exceeded 3.5 million BTC, but sustained outflows through 2023, 2024 and early 2026 have coincided with Bitcoin trading slightly above $70,000. This decline is linked to users shifting coins off platforms, as well as U.S. spot ETF demand and corporate treasury accumulation tightening available supply.

In a recent report to the Vancouver City Council, municipal staff concluded that bitcoin does not qualify as an allowable investment asset for the city under the Vancouver Charter and recommended ending work on a proposed BTC reserve. The motion, introduced by Mayor Ken Sim in November 2024 to make Vancouver more “bitcoin-friendly” by allocating part of its reserves to BTC, had been approved in December 2024 pending a feasibility review.

Bitcoin spot exchange-traded funds have recently seen their 14-day netflow trend swing back into positive territory, following a stretch of persistent outflows. According to Glassnode, this shift in ETF netflows has coincided with Bitcoin's rally above $70,000, while Binance's Net Taker Volume has also spiked close to $100 million in favor of buyers. Bitcoin is currently trading around $71,000, gaining more than 5% over the past week.

Macroeconomist Lyn Alden told the New Era Finance podcast on Wednesday that she would back Bitcoin to outperform gold over the next two to three years after gold's recent rally to an all-time high near $5,608 in January. She argued that market sentiment around gold is "somewhat euphoric" while Bitcoin, which is trading at $71,164 and 44% below its October peak of $126,000, faces "somewhat unfairly negative" sentiment.

On 4 March, U.S. spot Bitcoin ETFs saw net inflows of about $461.9 million, led by $306.6 million into BlackRock's IBIT product, while Bitcoin traded near $72,842 after recently dipping toward $63,000. Ethereum, Solana, and XRP ETFs also logged smaller inflows, but on-chain data indicates institutions are still tentative, suggesting a slow re-accumulation phase rather than an aggressive new bull leg.