Analysts suggest that Bitcoin's recent rebound may be driven by leverage, and continued capital outflows could lead to further price declines.

[Analyst: Bitcoin's Recent Rebound May Be Leveraged; Continued Outflows Could Lead to Further Price Declines] Mars Finance reported on December 28th that on-chain analyst Ali stated that the recent Bitcoin market is exhibiting a "Dead Cat Bounce," after which prices may fall again. On-chain data shows a continued decline in funds flowing into the cryptocurrency market, with net capital inflows turning negative for the first time in nearly two years, reaching -$4.5 billion. This means that funds are currently flowing out of the crypto market, not in. Bitcoin ETFs have seen net outflows of nearly $1 billion in the past two weeks. Any rebound currently seen in the market is likely leveraged rather than supported by spot demand, so the risk of further price declines remains.