Bitcoin (BTC) has underwent its second largest correction in this bull run, according to analysts at Crypto Exchange Bitfinex. The correction, from the highest level in the currency of 109,590 dollars on January 20 to $ 77.041 during the week from 9 to 15 March, starts by 30 % resulting from selling pressure from short -term holders.
In its report, BitFinex introduces short -term holders as those who have bought during the past seven to 30 days. According to exchange, they have suffered from purely achieved losses and are often more likely to surrender.
BitFinex notes that the continuous external flows of the Bitcoin investment funds, which total about 920 million dollars during the week from 9 to 15 March indicates that institutional buyers have not yet returned with a sufficient force to combat the pressure pressure.
Bitcoin capital flow by short -term holders. source: Glassnode/bitfinex
Trading is about 84,357 dollars, Bitcoin has recovered 9.5 % of its lowest level. According to Bitfinex, the main factor to move forward is whether institutional demand rises at these low levels, which may lead to supply and price stabilization.
“While institutional flows and the total situation are pivotal in the direction of the market in the medium term, statistically, the withdrawal by 30 percent is often minimal before continuing.” “If Bitcoin settles around this level, history indicates that a strong recovery may follow it.”
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Bitcoin etps see $ 5.4 billion in external flows for five weeks
Weekly flows of products circulating in encryption (ETPS) reached a series of five weeks, with a total of $ 6.4 billion as of March 14. According to data from Coinshares, Bitcoin Etps has bore the external flows, with $ 5.4 billion in losses.
The current macroeconomic climate may be weighing on the markets, according to Bitfinex. US consumer confidence has decreased to its lowest level in two years, and there are high inflation expectations along with economic uncertainty. On March 4, the Federal Reserve Model expected that the American economy would shrink by 2.8 % in the first quarter of 2025.
Meanwhile, commercial wars talks continue to control news, and put bitcoin status as a safe origin in doubt, while keeping miners on their toes, and perhaps the bull market may be in danger-despite the recent announcement of the White House of strategic reserves for bitcoin and the American digital asset store.
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