Bitcoin is currently down more than 20% from its record high set last month. Yes, the US Bitcoin ETF saw record outflows yesterday.
As Casey pointed out in his recent market report, other markets have also seen declines.
But that doesn't mean a rebound won't come, right? Although Bitcoin fell further on Wednesday (2pm ET at $84,200), the S&P 500 and Nasdaq Composite indices were largely stable.
"Bull markets typically peak amid excessive leverage, retail frenzy, and declining Bitcoin dominance - not when financing rates are compressing," Matt Mena, crypto research strategist at 21Shares, said in a report.
Mena wrote in the report that M2 money supply has been growing since mid-January, and quantitative tightening may "naturally end" soon.
21Shares executives also noted that the Pi Cycle Top indicator - which compares Bitcoin's 111-day simple moving average to twice its 350-day simple moving average - has not yet signaled a market top.
LMAX Group's Joel Kruger mentioned that traditional market risk appetite has cooled, due to global trade tensions and a more hawkish Federal Reserve outlook.
He believes: "We think the correlation between Bitcoin and traditional risk assets may be misleading, given Bitcoin's greater alignment with store of value characteristics, and its ability to easily generate meaningful demand as a portfolio diversification asset."
Kruger believes Bitcoin has "strong support" in the $70,000 to $75,000 range. He believes this should be an attractive higher low before the next major upswing, and could continue to rise, breaking above the $110,000 all-time high.
In addition to price, YouHodler market manager Ruslan Lienkha also discussed the potential impact of last week's Bybit hack on institutional confidence in centralized exchanges.
He believes this will not have a major impact, as security vulnerabilities more significantly affect retail traders who are heavily reliant on CEXs for trading and asset storage.
He said in an email: "Institutions typically adhere to strict financial management rules and only allocate necessary liquidity to CEXs for routine trading. Large-scale institutional trades are usually conducted through the over-the-counter (OTC) market, while long-term held assets are stored in secure self-custody solutions."
If you missed it, the SEC has concluded its multi-year investigation into Uniswap Labs. The company said the SEC will not take any enforcement action.
This comes after the securities regulator informed Coinbase last week that it plans to drop its case against the crypto exchange (pending final confirmation). Robinhood and OpenSea also revealed this week that the SEC is ending its investigations into those companies.
So not everything is going in a positive direction, but there are still some bright spots.
We'll see what we have to say after today's Nvidia earnings, tomorrow's initial jobless claims data, and Friday's PCE data release.
