"Bitcoin rose from a low of $63K on Saturday, the day the war ignited, to $74K on Wednesday, marking a 17% increase, before correcting to $70K now. We should question whether this recent rally is driven by real demand or just another speculative move that could fade away soon, causing another severe crash."
"Bitcoin spot exchange-traded funds have attracted $917.28M in netflow so far this week, per SoSo Value. Since October 10th, spot ETFs have exhibited a pattern of significant outflows followed by a brief inflow lasting 3-5 days, which then sharply reverses. These dynamics highlight short-lived speculative activity, indicating that ETF inflows may be an inconsistent lead indicator for market recoveries."
"Unless the market experiences sustained, multi-billion-dollar inflows over several weeks, the current intermittent pattern is likely to persist, exerting downward pressure on overall price action. The speculative narrative is further reinforced by current trends in crypto futures, where open interest and ETF inflows appear increasingly correlated."
Bitcoin rallied 17% from $63K to $74K following Middle East conflict disruptions to energy supplies, defying broader market declines and inflation concerns. However, the cryptocurrency has since corrected to $70K, raising questions about rally sustainability. Federal Reserve rate cut expectations have shifted from June to July, with current rates now 64.4% likely to remain unchanged. Bitcoin spot ETFs received $917.28M in net inflows this week, but historical patterns show brief inflows followed by sharp reversals. This cyclical pattern suggests short-lived speculative activity rather than sustained demand, potentially indicating downward pressure ahead unless multi-billion-dollar inflows materialize over several weeks.
Read at London Business News | Londonlovesbusiness.com
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