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Bitcoin is facing the potential of breaching a vital support price point as US-based spot Bitcoin ETFs continue to experience declines following the recent cryptocurrency market downturn, as per analysts from Bitfinex.
“The absence of institutional buying has rendered the $107,000 to $108,000 area increasingly challenging to sustain as support,” Bitfinex analysts stated in a report on Tuesday, highlighting substantial net outflows following US President Donald Trump’s tariff declaration earlier this month.
From Oct. 13 to Oct. 17, spot Bitcoin (BTC) ETFs encountered approximately $1.23 billion in net outflows, as reported by Farside.
The Bitfinex analysts mentioned that the data “highlights the current lack of significant dip-buying from institutional players.”
This week has observed outflows on two out of three trading days; however, robust inflows on Tuesday have maintained overall net flows positive at $335.4 million thus far.
Bitcoin ETF performance mirrors the broader financial landscape
As of the time of writing, Bitcoin is trading at $108,864, according to CoinMarketCap, after momentarily climbing above $113,000 earlier this week before swiftly retracting back below $110,000 once more.
Bitfinex analysts indicated that Bitcoin’s price rests at a pivotal juncture where it may “act as a key warning indicator” of a more extended consolidation phase should it drop further.
Related: Bitcoin ETFs embark on ‘Uptober’ with $3.2B in second-best week on record
The analysts noted that this could occur if ETF inflows do not remain robust. “If weakness continues or ETF inflows fail to considerably rebound in the upcoming weeks, it would signify increasing demand-side vulnerability,” the analysts elaborated, adding:
“Such a situation could weaken one of the main drivers behind previous surges —consistent institutional accumulation, intensifying the risk of a more prolonged consolidation period.”
Nevertheless, the general agreement among market participants is that Bitcoin will witness an upward trend before year-end, with individuals like BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee still forecasting Bitcoin could hit $250,000 by year-end.
Galaxy Digital CEO Mike Novogratz tempered this notion on Tuesday, however, stating that several “extraordinary events” would need to occur for this prediction to materialize.
In a worst-case scenario, Bitcoin should still remain above $100,000 this year, he asserted.
Magazine: Bitcoin could falter if it fails to eclipse gold, XRP bulls regain their stance: Trade Secrets
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