Could Bitcoin ETF Outflows Signal a Bear Market? | Airdrop Alert Pro

Concerns about bear markets are growing as Bitcoin ETF outflows rise sharply volatility. Other hopes, such as state-level Bitcoin reserves, have failed and it is difficult to find a clear bullish trend.

Industry experts like Arthur Hayes predict that any loss will be temporary and there will be a sharp rebound by the end of the year. However, this will be the first major price crash since ETF approval and institutional adoption, and non-secret investors may be acting in unpredictable ways.

Is Bitcoin going to a bear market?

Bitcoin is the world’s first and largest cryptocurrency. Always on a downward price trajectory recent. Strategy (formerly a microcosm) Stock price fell sharply Despite spending nearly $2 billion on assets, A broader economic headwind It is having a real damping effect.

Some worrying trends are building guess About the Bitcoin bear market:

“Bitcoin Goblin Town Access: Many IBIT holders are hedge funds, continuing ETFs (and) short CME futures To obtain a larger yield than their funding, short-term U.S. Treasury bonds. If that basis falls as BTC falls, then these funds will sell Ibit and buy back CME futures. ” said Arthur Hayes, former Bitmex CEO.

Hayes also quoted His early predictions from January The price of the asset dropped to $70,000. He claimed that this bear market will not last forever, and Bitcoin will rebound by the end of this year, but will face major pain first.

Hayes’s predictions US Bitcoin ETF Marketalways faces pressure from myself.

These ETFs are Show signs of a bear marketcaused by a simple correlation: the downward trend of Bitcoin along with traditional stocks.

Even if there is a huge interest in institutional investment, this is shallow in some ways. If the potential returns of BTC are reduced, investors will look elsewhere, which is proven by a large amount of outflows.

These one-day outflows totaled over $500 million based on the top 10 ETFs alone. However, outflows across the market were $585 million last week, the worst level in five months.

If ETF outflows accelerate at this dramatic pace, it seems likely that the Bitcoin bear market will be.

Bitcoin reserve hope fails, reducing enthusiasm

If political development does not meet hope, another factor may lead to additional downward pressure. Specifically, many U.S. states have launched efforts to develop Bitcoin reserves, which will Triggering up to $23 billion in BTC purchases.

However, some Republican members themselves Beating these efforts National. With its other setbacks, can Bitcoin cause significant disappointment here?

in short, Many factors make the Bitcoin bear market look like a reliable prospect. However, the industry is no stranger to the huge price fluctuations. Hayes and others commentator Claiming that this is temporary at bestthere will be a rebound by the end of 2025.

So the only question is how the non-secret investor class will handle these cyclical patterns. With Bitcoin ETFs approved in 2024, the industry has not yet faced a real bear market the same as the previous crash.

Institutional investors have recently invested billions of dollars in cryptocurrencies, but are not sure how they will deal with the volatility inherent in the industry.