The sharp market downturn can be linked to a combination of macro and structural triggers impacting the crypto industry.
According to them:
“In the near term, we expect bouts of knee-jerk volatility, with any selling pressure in equities spilling over into crypto, tightening liquidity and weighing on leveraged positions. If yield curves steepen and credit risk premiums widen, BTC could face some profit-taking before resuming any upward trajectory.”
Meanwhile, institutional investors’ sentiment also appears to be souring, with spot Bitcoin and Ethereum exchange-traded funds (ETFs) recording combined outflows of around $600 million.
Meanwhile, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and WisdomTree’s BTCW reported no net flows for the period.
Considering this, Timothy Misir, head of research at BRN, told CryptoSlate that the shift in ETF demand has turned “a temporary pause into a structural headwind.”
He cautioned that if the combined redemptions exceed $1 billion within 48 hours, or if miner sales resume, Bitcoin could test the $96,000 region before stabilizing.
