Analysts from Bitfinex say that Bitcoin could break a key support level, as US-based Bitcoin ETFs continue to lose value after the recent crash in crypto markets.
“The lack of institutional accumulation has made the $107,000 to $108,000 zone increasingly difficult to defend as support,” Bitfinex analyst said The report, published Tuesday, noted that net flows were significant after US President Donald Trump announced tariffs at the beginning of this month.
From October 13 to 17, you can buy Bitcoins (BTCETFs experienced net outflows of around 1,23 billion dollars. 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’s performance is similar to that of the broader Financial Market
Bitcoin’s current price is $108,864. according CoinMarketCap reports that Bitcoin briefly surged above $113,000 in early this week, before quickly falling back to below $110,000.
Bitfinex analyst said Bitcoin is near a critical point, where the price may drop. “serve as a key warning signal” If it drops any further, there will be a longer consolidation period.
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.”
The consensus of market participants, however, is that Bitcoin’s price will rise by the end of this year. BitMEX chair Tom Lee and BitMine co-founder Arthur Hayes are still forecasting Bitcoin to reach $250,000.
Galaxy Digital Chief Executive Mike Novogratz poured some cold water on this on Tuesday however, The number is a good example of a phrase that can be used. “crazy stuff” For this to happen, it would be necessary for something to have happened.
Bitcoin, even in a worst-case situation, should be over $100,000 for this year.
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Source: cointelegraph.com
