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 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 (BTCThe net outflows from ETFs totaled around $1.23billion. according Farside
Bitfinex analysts stated that data. “underscores the current absence of meaningful dip-buying from institutional investors.”
The net flow has been positive at $335.4 Million so far this week despite the fact that two trading days saw outflows.
Bitcoin ETF Performance mimics the wider financial markets
Bitcoin has a current value of $108,864 as at this writing. 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 retreated 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,” The analysts added:
“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 CEO Mike Novogratz poured some cold water on this on Tuesday however, You can say that many people. “crazy stuff” This would need to occur for it to be possible.
He said that even in the worst case scenario Bitcoin would still be above $100,000 by this year.
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Source: cointelegraph.com
