Bitcoin Crash warned analysts that state the territory of negative growth

Bitcoin (Btc) Prices movements previously reflected consolidation period Canceling below $ 90,000 After BTC failed to be violated above its all time in February. According to the last edition of the “Bitfinek Alpha” report, macroeconomic uncertainty deteriorates this scenario.

Over the past week, Bitcoin varied within 6.5%, peak to $ 99,574 21. February before closing at $ 96,346. Since it fell by an additional 7.5% to $ 88,600 from the time of pressure.

Two significant events deteriorated the fall in the market: a Hack Including Crypto Exchange Bibit and a sharp drop after the S & P 500 options expires. The latter resulted in a fall by 4.7%, which temporarily pressed Bitcoin below $ 95,000 before recovery.

From 22. February, Bitcoin rejected 5.9% of its recent climax and now sits 19% despite the rise of 48.4% in November 2024. Years. Ethereum (El) and Solana (Salt), who also saw significant gains at the end of 2024. year, withdrawn 16.9% and 33.1%, respectively.

Memecoins, who tend to experience extreme volatility, declined 37.4% after they were in December 2024. they recorded 90.2% in December. They have fallen on average 12% across the board in the last 12 hours since then.

The contraction is not isolated to digital assets. The wider financial market also struggled, especially S & P 500, which had difficulty maintaining a rally above 6,000 levels and now sits at 5950 in the pre-market.

A drop of 2.1% in equity 21. February reflects the pressure down through risky assets, including crypt. 24. February saw to fall even more. The correlation between crypto and traditional markets remains a defined factor, and investors who react to wider macroeconomic signals.

Institutional demand and ETF flows

Bitcoin (ETFS) stocks were marked by a marked deceleration of inflows, indicating a reduction in institutional interest. The purchase of ETF based in the US has fallen from the daily acquisition of 4,000-5,000 BTCs in November at less than 1,000 BTC daily during the previous week.

In addition, the outflow of the ETF reached the peak to 360 million dollars 20. February, reflecting the decline in bullal feeling.

Despite this, the activity on the party showed resistance at lower levels of prices, and the BitCoin ETFS contributes over 8% of the Global Trade Point at 21. February.

However, participation of Etrum ETF remains weak, with net flows that float near zero in certain means. The demand of institutional investors present indicates hesitation in connection with the CRIPTO exposed in the current market environment.

The wider reduction of capital inflows is visible within the permanent futures market, where open interest (OI) decreased significantly in great interest. For over 30 days, Bitcoin OO decreased by 11.1%, while Etrereum and Solana saw from a reduction of 23.8% and 6.2%, respectively.

Memecoins has experienced the oldest decline, with a decrease of 52.1% in OI, emphasizing their reliance on speculative trading.

The decline in the position in use proposes that traders scales exposure to the weakness of momentum and enhanced uncertainty.

The report noted that the hardest taking in OI noted in assets with greater instability, increasing the sense of risk and unbelievable market participants.

Potential for further reduction and negative feeling

Before last night’s collision, Julio Moreno, the head of research on Cryptocual, prominent Chain data indicating that the demand for Bitcoin in a negative growth territory. This is the first time BTC has entered this area since September.

This condition makes it difficult for BTC to collect, increases the risks of deeper correction, which starts playing.

Moreover, it has increased a negative feeling among investors. As a milky road divided On X, although Bitcoin is 14% shy its previous all the time of 109,354 dollars, the time for printing, crypto market sentiment mirrors were seen in August 2024. Years.

That month, Bitcoin was at approximately $ 55,000 and crashed massively after the incident of the stores of Jena.

Mentioned in this article