BTC remained volatile around $95,000 over the weekend. It reached a high of $95,750 yesterday, but started a new round of declines from yesterday evening, hitting a low of around $93,000 this morning, a new low in the past week.
As of the time of writing, BTC has rebounded slightly, currently trading at $93,610, down 1.32% in the past 24 hours.
Bitcoin Spot ETF Sees Outflows Again
In terms of Bitcoin spot ETF performance, there was another $287 million in outflows last Friday (after a net outflow of $376 million the previous week due to the holidays). It appears the market liquidity shortage caused by the holidays in Europe and the US has not yet recovered significantly.
If the outflow situation does not improve, it may continue to put pressure on the BTC price.
$155 Million in Liquidations in the Past 24 Hours
According to data from Coinglass, over the past 24 hours, the total crypto liquidation amount reached $155 million, with long positions accounting for $116 million and short positions $36.98 million. Over 75,000 people were liquidated.
Bitwise: Further Declines Possible in the Coming Weeks
Faced with the continued downward trend of BTC, Andre Dragosch, Head of European Research at asset management firm Bitwise, said last week that this risk-off sentiment may persist for some time:
Overall, the Fed is currently in a dilemma, as despite three consecutive rate cuts since September, financial conditions continue to tighten. At the same time, according to the Truflation US inflation indicator, real-time inflation measurements have accelerated to new highs in recent months.
Dragosch added that BTC may see further declines in the coming weeks, but this could also be a good opportunity to 'buy the dips':
Therefore, we are likely to see more painful declines in the coming weeks, but given the continued positive fundamentals provided by the limited BTC supply, this may be an interesting buying opportunity.
Additionally, according to a report by Cointelegraph, Bitwise's Chief Investment Officer Matt Hougan said the recent crypto market correction may be due to "the natural deleveraging of leverage", and emphasized that the long-term fundamental factors remain strong, with the crypto market still in a robust bull market.
