Bitcoin's recent price swings indicate a lack of strong institutional participation, keeping the market in a consolidation phase.
A report from Bitfinex highlights Bitcoin’s sharp decline from its record high of $109,590 on January 20 to a low of $77,041 last week—a 29.7% drop, making it the second-deepest correction in the current bull cycle.
While bull markets historically see pullbacks of around 30% before resuming upward momentum, this cycle has had milder corrections due to institutional adoption and ETF demand. However, short-term holders are now experiencing losses, increasing the risk of further selling.
One key concern is the slowdown in new capital inflows. A decline in fresh investment typically signals weaker demand, making it harder for Bitcoin to sustain critical support levels. If this trend continues, BTC could remain stuck in consolidation or even face further declines as investors offload their holdings.
Analysts believe that Bitcoin’s next move depends on whether institutional investors and long-term holders step in to absorb selling pressure. If larger players begin accumulating at current levels, it could stabilize prices and shift sentiment toward a more bullish outlook.
After more than four weeks of uninterrupted investor enthusiasm, BlackRock’s iShares Bitcoin Trust has reported its steepest daily outflow since its inception, signaling a potential shift in sentiment.
Pakistan’s aggressive embrace of Bitcoin mining has drawn scrutiny from the International Monetary Fund (IMF), which is now demanding clarity on the country’s allocation of 2,000 megawatts of electricity to digital assets and AI infrastructure.
A new analysis from China’s International Monetary Institute (IMI) suggests that Bitcoin is quietly gaining ground as a serious player in the global reserve system.
Bitcoin may be on the verge of a major supply squeeze, with dwindling availability and accelerating institutional interest setting the stage for potentially explosive price action, according to Sygnum Bank’s Katalin Tischhauser.