[Analysis] "Bitcoin Lacks Upward Momentum... Institutional Demand Slowing Down"

Analysts predict that Bitcoin (BTC) prices will likely struggle to rebound in the near term due to macroeconomic uncertainties.

Global cryptocurrency exchange Bitfinex stated in a report on the 24th (local time) that "Bitcoin has reached a 'critical inflection point' as it fell below $91,000." Bitfinex analyzed that "Bitcoin has been trading in a range between $91,000 and $102,000 over the past three months," adding that "it lacks momentum for a sustained breakout."

Institutional demand is also declining, according to the analysis. Bitfinex reported that "institutional demand through Bitcoin spot ETFs has significantly slowed down," noting that "last week saw daily net outflows from Bitcoin ETFs, resulting in withdrawals of $552.50 million."

Bitfinex pointed out that the coupling (correlation) between Bitcoin and traditional finance is strengthening. They analyzed that "Bitcoin is increasingly correlating with traditional financial markets," and that "the main factor causing recent stagnation in the cryptocurrency market is the stagnation in traditional financial markets due to macroeconomic uncertainty."

The future outlook is not bright either. Bitfinex stated that "the overall U.S. economy is struggling due to declining consumer confidence and rising inflation expectations," and that "almost all major cryptocurrencies have entered a contraction phase."