"Bitcoin shows signs of a mini bear market…future direction depends on Fed policy"

Minseung Kang

Summary

Odaily reported that Bitcoin is showing a structure similar to a mini bear market environment.
Matrixport said ETF inflows are slowing and that market direction will be greatly influenced by U.S. central bank (Fed) policy.
The market is at a 'decisive inflection point' and, depending on future developments, could see further declines or a phased bottoming process.

Bitcoin (BTC) is showing a structure similar to past 'small-scale bear cycles,' according to an analysis. Whether the short-term correction will remain a simple adjustment or develop into a deeper bearish phase depends on key indicators and policy variables.

On the 14th, cryptocurrency-focused media Odaily reported that digital asset service provider Matrixport said in its latest report, "The current Bitcoin market is exhibiting characteristics close to a mini bear market environment," adding, "Investors should respond more sensitively to changes in core indicators."

Matrixport said, "ETF inflows are slowing, and both short- and long-term funds have engaged in some profit-taking," noting, "Since there is no new macroeconomic catalyst in the short term, market direction will be largely determined by the future policy stance of the U.S. central bank (Fed)."

It added, "The market is now at a 'decisive inflection point' where multiple structural price zones and macro triggers overlap," and "depending on how things unfold, it could move toward either further declines or a phased bottoming process."

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