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 In a report published on Tuesday, the authors noted significant net outflows following US President Donald Trump’s announcement of tariffs earlier in the month.
Spot Bitcoin between October 13 and 17 (BTCAround $1.23 billion was lost in ETFs. according Farside
Analysts at Bitfinex said that the data was a bit misleading “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 flow positive to date at $335.4 millions.
Bitcoin ETF Performance mimics the wider financial markets
Bitcoin’s current price is $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 climbed 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,” 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.”
Market participants are in agreement that Bitcoin is likely to see a rise before the end the year. 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, The number is a good example of a phrase that can be used. “crazy stuff” This would need to occur for it to be possible.
Bitcoin, even in a worst case scenario, should be worth more than $100,000 this year.
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
