📉 Bitcoin (BTC) has established a local bottom at $56,000 within the current trading range after falling 17.5% from its all-time high of $73,700.

🔍 Bitfinex analysts revealed in the latest Bitfinex Alpha report that the main factor behind BTC bottoming was the stabilization of inflows into Bitcoin exchange-traded funds (ETFs). This suggests that demand for the asset is starting to decline, allowing the market to find balance.

📊 Bitcoin market cycle history shows that sharp declines from local peaks have never exceeded 23%. This was seen during the bear market bottom of November 2022, when BTC fell below $15,500. The average correction during this cycle, which includes rapid intraday collapses largely triggered by leverage, ranges from 20% to 22%.

🔄 With Bitcoin's last correction being 17.5%, analysts believe that the current cycle is following the steps of the previous cycle.

🔑 The $56,000 level could also be a key point for the Bitcoin market's short-term path.

📉 Last week, Bitcoin stock ETFs saw negative flows for the first time since launching in early January. However, after reducing inflows from nine new product launches, net inflows for the week were $896 million.

🔮 Meanwhile, Bitfinex expects a period of volatility for BTC in the short term due to reduced demand for ETFs.