PiCK
Bitcoin Pullback Milder Than in Past Bear Markets as Corporate Buying Supports Prices
Summary
- The current Bitcoin (BTC) market cycle has seen a relatively limited pullback compared with past bear markets.
- Cumulative net inflows into U.S. spot Bitcoin exchange-traded funds (ETF) have surpassed $59 billion, and corporate BTC accumulation is helping limit the market’s downside.
- The market is focused on how institutional inflows and expanding corporate accumulation will affect BTC volatility and its long-term price trajectory, with the future regulatory environment and ETF fund flows seen as key variables.
Forecast Trend Report by Period
Bitcoin’s current market cycle is unfolding differently from past bear markets, with institutional and corporate buying helping support prices.
Pierre Rochard of Bitcoin Bond Company told Cointelegraph on May 12 that Bitcoin fell 77% to 85% during the 2015, 2018 and 2022 bear markets, while the current correction has been comparatively limited.
Cumulative net inflows into U.S. spot Bitcoin exchange-traded funds have exceeded $59 billion, he said.
Ongoing Bitcoin accumulation by companies including Strategy is also helping limit the market’s downside, Rochard added.
Some analysts say record highs in the Nasdaq, a vote on the U.S. CLARITY Act and discussions over a strategic Bitcoin reserve are also reshaping the market’s structure.
Market participants are watching how institutional inflows and rising corporate accumulation will affect Bitcoin volatility and its longer-term price trajectory. The regulatory environment and ETF fund flows remain key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
