Bitfinex highlights worries among traditional finance investors as company withdraws from $70k mark
Bitcoin’s recent decline is causing traditional investors to exercise caution and pay close attention to forthcoming flow data in order to gauge market sentiment. According to a research report by Bitfinex, the recent price retreat was one of the largest dips since the introduction of spot Bitcoin ETFs earlier this year.
Despite the significant inflows into spot Bitcoin ETFs, which surpassed a billion dollars in a single day last week, recent data suggests a stabilization in flows, leading some market observers to take a pause. This comes after Bitcoin experienced remarkable growth since the beginning of 2024, with a 74% surge in value and a staggering 90% increase from its post-ETF slump lows. However, the recent sharp corrections, occurring twice within two weeks, indicate a potential deceleration in the strong uptrend observed since the latter half of 2023. Analysts at Bitfinex believe this may signal a period of consolidation for the broader crypto market, although it doesn’t necessarily mean a bearish outlook.
The analysts stress the importance of the upcoming week’s flow data, as it will play a crucial role in understanding investors’ sentiment towards Bitcoin and assessing the overall confidence of the investment community in its stability.
Currently, Bitcoin is facing selling pressure and is trading below the $65,000 mark, according to CoinMarketCap data. Markus Thielen, Founder of 10x Research, believes that March 19th will be a pivotal day for Bitcoin, and a continuation of the correction is possible if ETF inflows fail to meet expectations amidst recent market volatility. However, Thielen also notes that despite the potential for a deeper correction, the market can still argue that Bitcoin will climb significantly higher in the next few months as the bull market is likely to continue.
In summary, traditional investors are exercising caution due to Bitcoin’s decline, and the forthcoming flow data will be crucial in understanding market sentiment. Despite recent corrections, analysts believe that Bitcoin’s long-term prospects remain positive.
