Bitcoin Remains Over 20% Below All-Time High Amid ETF Outflows
Bitcoin is currently over 20% below its all-time high from last month, with US bitcoin ETFs experiencing record outflows. Despite a drop to $84,200 on Wednesday, the S&P 500 and Nasdaq indexes remained flat.
Key insights include:
- 21Shares crypto research strategist Matt Mena noted that bull markets peak amid excessive leverage and retail euphoria, not compressed funding rates.
- Liquidations are resetting overleveraged positions, creating healthier market conditions for traders.
- A memecoin frenzy suggests mid-cycle speculation, echoing patterns from 2020-2021.
- 53% of wealth managers plan to allocate to crypto in client accounts, with 33% expected within six months.
- The M2 money supply has been increasing since January, and quantitative tightening may soon reach its natural end.
- The Pi Cycle Top Indicator has not yet signaled a market peak.
- Joel Kruger from LMAX Group emphasized that correlations between bitcoin and traditional assets can be misleading, positioning bitcoin as a valuable portfolio diversification asset.
- Formidable support for BTC is identified in the $70,000-$75,000 range, with potential for a bullish continuation beyond $110,000.
- The Bybit hack is unlikely to significantly impact institutional confidence in centralized exchanges, as institutions typically use OTC markets for large trades.
- The SEC closed its investigation into Uniswap Labs without pursuing enforcement action, following similar closures of investigations into Coinbase, Robinhood, and OpenSea.
Upcoming economic indicators include Nvidia earnings, initial jobless claims, and PCE data release.