Amid the subtle changes in the cryptocurrency market, Bitcoin (BTC) appears to be entering a stabilization phase, with indicators suggesting traders are entering a period of accumulation.
Analysts say this lukewarm good news comes despite price fluctuations, with the major cryptocurrency trading 0.7% lower at $66,300, up 7% over the past two weeks. I’m paying attention to the news.
Meanwhile, Ethereum is down 2% to $2,570, according to data from CoinGecko, although Ethereum is also up 5.5% over the past two weeks.
Market analysts point to several key factors that support this stabilization thesis. Circle’s $1.7 billion decline in USDC was offset by key liquidity metrics, including significant stablecoin inflows totaling $38 billion this year, particularly outpacing the $21 billion that flowed into Bitcoin Spot ETFs. There is.
According to 10x Research, the market is absorbing a number of factors before potentially returning to an upward trajectory. “We believe the market needs time to digest the rise in bond yields, rather than becoming overly pessimistic, before Bitcoin rises again,” 10x Research said in a note to Decrypt.
They highlighted that although Bitcoin and Ethereum funding rates have increased to 10%, spot prices have lagged and retail participation remains suppressed. “While we would like to see multiple indicators align and confirm bullish momentum, this is not a major concern. It will probably only take a few days for the market to absorb these factors.”
In addition to this, total stablecoin inflows have been a key driver of liquidity this year. 10x Research points out that “Since the launch of the Bitcoin Spot ETF, stablecoin inflows have totaled $36 billion, and liquidity remains strong.” These inflows are putting upward pressure on the Bitcoin price. He emphasized that he is continuing.
BRN analyst Valentin Fournier also pointed to institutional investor activity as an important indicator.
“After seven consecutive days of total ETF inflows exceeding $2 billion, Bitcoin ETF inflows have temporarily stopped,” Fournier explained. “This indicates a slight decline in institutional demand, but at current price levels we are still seeing accumulation, suggesting a potential upward trend once the market stabilizes.”
Fournier also noted that Bitcoin retreated to $67,000 after being rejected by the $70,000 resistance, but this gradual rejection suggests traders are building up capital in preparation for a bullish breakout. He pointed out that it was suggested. “The upcoming US presidential election, potential interest rate cuts, and global economic stimulus could push cryptocurrencies to new highs in the coming weeks,” he added.
However, FxPro senior market analyst Alex Kupczykevich urged caution as Bitcoin remains hovering around key support levels. “Bitcoin is close to the local support level at $66,800. A break below this support could pave the way for a deeper correction towards $65,500,” Kupczykevich said.
Despite the recent pullback, he highlighted Bitcoin’s dominance in the market, noting that BTC’s share of the crypto market capitalization has risen to 57.3%, the highest since April 2021.
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