🚀 Bitcoin (BTC) formed a local bottom at $56,000! The cryptocurrency is down 17.5% from its all-time high of $73,700. 📉
Bitfinex analysts noted that the key factor behind BTC forming a bottom is the stabilization of flows into spot Bitcoin exchange-traded funds (ETFs). This suggests that asset demand is starting to slow, allowing the market to find balance.
📊 Historical Bitcoin market cycle models show that significant declines from local tops have never been greater than 23%. This was seen during the bear market bottom in November 2022, when BTC fell below $15,500. The average retracement in this cycle is in the 20% to 22% range, with leverage-triggered intraday spikes.
Since Bitcoin's last correction was 17.5%, analysts believe that the current cycle is following in the footsteps of its predecessors.
Last week, spot Bitcoin ETFs experienced net negative flows for the first time since launching in early January. Each trading day witnessed net negative flows, with total outflows from Grayscale's GBTC exceeding $2 billion. But when flows from nine emerging products were deducted, weekly net outflow fell to $896 million.
Meanwhile, Bitfinex expects BTC to fluctuate periodically in the near term due to a decrease in ETF demand. The decline is expected to be relatively modest, and data on Monday shows flows turning positive.
Bitfinex analysts noted that the key factor behind BTC forming a bottom is the stabilization of flows into spot Bitcoin exchange-traded funds (ETFs). This suggests that asset demand is starting to slow, allowing the market to find balance.
📊 Historical Bitcoin market cycle models show that significant declines from local tops have never been greater than 23%. This was seen during the bear market bottom in November 2022, when BTC fell below $15,500. The average retracement in this cycle is in the 20% to 22% range, with leverage-triggered intraday spikes.
Since Bitcoin's last correction was 17.5%, analysts believe that the current cycle is following in the footsteps of its predecessors.
Last week, spot Bitcoin ETFs experienced net negative flows for the first time since launching in early January. Each trading day witnessed net negative flows, with total outflows from Grayscale's GBTC exceeding $2 billion. But when flows from nine emerging products were deducted, weekly net outflow fell to $896 million.
Meanwhile, Bitfinex expects BTC to fluctuate periodically in the near term due to a decrease in ETF demand. The decline is expected to be relatively modest, and data on Monday shows flows turning positive.