The leading cryptocurrency has been in a clear decline lately, with its price tumbling well below $70,000.
Certain analysts and well-known financiers think the bottom during this cycle has yet to be reached, while waning institutional interest in the asset intensifies fears of a more substantial sell-off.
Red Days for the ETFs
Several hours ago, BTC dropped to nearly $65,000, its lowest level since March this year. The analyst Ali Martinez recently predicted that slipping below the $71,300-$73,000 range could lead to a decline of that magnitude, while X user Ted envisioned a deeper crash to as low as $55,000.
Of course, Peter Schiff also added his name to the pessimists. The well-known crypto critic and gold proponent forecasted a major collapse to $20,000 if BTC breaks $50,000. In his view, such a catastrophe would shake the conviction of the long-term HODLers and cause them “to finally throw in the towel.”
Recent netflows in spot BTC ETFs serve as a warning that conditions for the primary cryptocurrency could worsen in the near future. Over the past 12 days, outflows have surpassed inflows, suggesting that institutional investors (such as pension funds and hedge funds) have reduced their exposure to the asset.
This, in turn, has prompted ETF issuers (BlackRock, Fidelity, and other financial giants) to sell real BTC, adding even more downward pressure on an already fragile market. It is important to note that spot Bitcoin ETFs have not experienced 12 consecutive red days since their launch.
The rising amount of BTC stored on centralized exchanges is another concerning factor. There are now more than 2.72 million coins held on such trading venues, the highest point since March. The development doesn’t guarantee a further price crash, but it does increase selling pressure.
Is the Bottom Close?
Another popular X user who touched upon the matter is bee. They believe that BTC is in the final stage of the bear cycle, yet this doesn’t rule out an additional decline. The analyst forecasted a plunge to $47,000-$51,000 by October this year, after which the bulls are expected to regain control.
For their part, Max Crypto noted that BTC’s Relative Strength Index (RSI) has dropped under 30, which has historically been followed by a bottom and a subsequent rally by nearly 40%.
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