In September, fears of further Bitcoin capitulation became particularly noticeable due to low demand from institutional investors, resulting in a net cash outflow of over $200 million from US spot BTC ETFs.
Current Bitcoin Market Situation
Over the past two days, a net cash outflow of over $200 million ended an eight-day streak of inflows to US spot BTC ETFs, primarily led by ARK 21Shares Bitcoin ETF (ARKB). As a result, Bitcoin's fear and greed index dropped below 30%, representing heightened fear of further crypto capitulation.
Analyst Predictions
Since March, Bitcoin's price has been trapped in a downtrend characterized by lower highs and lower lows. Popular crypto trader Alan Santana predicts a major correction in the crypto and stock markets in the coming weeks before the bulls take over. He noted that the high Bitcoin trading volume below all daily EMAs is a major bearish signal that traders should not ignore.
What to Expect in the Future
Amid the anticipated 'easy money' due to a possible Fed interest rate cut next month, the crypto analyst indicated that more investors will accelerate profit-taking. Major stock indexes like the Dow Jones and the Nasdaq 100 have been forming a macro reversal pattern, suggesting a potential selloff in the near term.
In the coming weeks, investors should be prepared for volatility in the Bitcoin and broader cryptocurrency markets. Carefully studying current market conditions and analyst forecasts will help in making informed decisions during this uncertain period.
Comments