Bitcoin slide extends as record ETF outflows and 60% rate-hike probability signal structural cracks beneath the rally: analysts
The Block
Bitcoin prices fell as record ETF outflows and concerns over potential interest rate hikes highlight a lack of underlying spot market conviction.Summary
Bitcoin's recent price drop, falling to roughly $76,700, follows record single-day ETF outflows of $649 million. Analysts from Kaiko and Bitfinex indicate that the recent rally was driven primarily by high leverage in derivatives markets rather than sustainable spot market demand. Compounding this, a 60% market probability of Federal Reserve interest rate hikes and broader macroeconomic pressures are further challenging the crypto market's momentum. While institutional interest remains, the lack of capital velocity and high leverage leave the market vulnerable to sharp corrections.
(Source：The Block)