According to Bitfinex analysts, Bitcoin may break through a critical support price because US-based Bitcoin ETFs are bleeding red even after the recent crypto crash.
“The lack of institutional accumulation has made the $107,000 to $108,000 zone increasingly difficult to defend as support,” Bitfinex Analysts said The report, published Tuesday, noted that net flows were significant after US President Donald Trump announced tariffs at the beginning of this month.
Spot Bitcoin between October 13 and 17 (BTCA net of $1.23 billion was lost by ETFs. according Farside
Bitfinex analysts stated that data. “underscores the current absence of meaningful dip-buying from institutional investors.”
Two of the three trading days this week saw net outflows, but strong inflows Tuesday has kept the overall net flows at $335.4 millions.
Bitcoin ETF Performance mimics the wider financial markets
Bitcoin has a current value of $108,864. according CoinMarketCap says that after briefly rising above $113,000 during the first part of this week and then quickly dropping back down to $110,000, it has now slipped below that level again.
Bitfinex analysts believe Bitcoin’s price has reached a pivotal point. “serve as a key warning signal” It will likely be subject to a prolonged period of consolidation if the price drops.
Related: Bitcoin ETFs kickstart ‘Uptober’ with $3.2B in second-best week on record
Analysts said this could happen if ETF flows don’t remain strong. “If weakness persists or ETF inflows fail to recover meaningfully in the coming weeks, it would point to growing demand-side fragility,” Analysts explained by adding:
“Such a scenario could undermine one of the primary forces behind previous rallies —consistent institutional accumulation, heightening the risk of a more prolonged consolidation phase.”
Market participants are in agreement that Bitcoin is likely to see a rise before the year’s end. BitMEX founder Arthur Hayes, and BitMine chairman Tom Lee, for example, still predict Bitcoin can reach $250,000 at year’s end.
Galaxy Digital Chief Executive Mike Novogratz poured some cold water on this on Tuesday however, Several people have said that “crazy stuff” This would need to occur for it to be possible.
Bitcoin, even if it were to fall, would likely still reach $100,000 in this year’s worst-case scenario.
Magazine: Bitcoin to suffer if it can’t catch gold, XRP bulls back in the fight: Trade Secrets
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Source: cointelegraph.com
