Summary
- Bitfinex evaluated that market sentiment changed rapidly following the Jackson Hole speech.
- According to the report, major cryptocurrencies like Bitcoin experienced volatility due to ETF outflows and a short squeeze.
- Bitfinex stated that ETF fund flows remain a key market variable, and projected limited movement for both Bitcoin and altcoins.
The cryptocurrency exchange Bitfinex stated in its weekly analysis report, Bitfinex Alpha, published on the 25th (local time), that "market sentiment changed dramatically after last week's Jackson Hole speech by Jerome Powell, Chair of the U.S. Federal Reserve (Fed)."
According to the report, Bitcoin (BTC) dropped nearly 10% from its peak due to deteriorating inflation indicators and ETF outflows, but after Powell’s dovish remarks, there was a strong short squeeze that led to a rebound in major cryptocurrencies.
However, the report emphasized that "ETF flows remain a key variable," and noted that "last week, there was a net outflow of $1.18 billion from U.S. spot Bitcoin ETFs, and a daily net outflow of $197 million from Ethereum (ETH) ETFs, marking the largest net outflows since April."
Bitfinex further forecasted that "Bitcoin is likely to remain within a trading range in the short term, while altcoins will show limited movement until institutional funds begin to flow in in earnest."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
