Bull Market

Bitcoin

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Rekt

The bitcoin market has been chilly during the last two weeks. The uncontested ruler of the cryptocurrency world, Bitcoin, has taken the brunt of the cold., experiencing its <a href="https://blog.coinshares.com/volume-187-digital-asset-fund-flows-weekly-report-03a835f3e795" target="_blank" rel="noopener nofollow">worst weekly outflow in three months</a> at a staggering $621 million, according to a recent report by Coinshares, a digital asset investment firm. This isn’t just a case of Bitcoin catching a cold; the entire market is experiencing a collective shiver, with major outflows impacting assets across the board. 
<h2 data-sourcepos="5:1-5:49" id="strong-bitcoin-investor-confidence-takes-a-hibernation-break-strong">Bitcoin: Investor Confidence Takes A Hibernation Break</h2> 
Investor sentiment has taken a sharp turn towards the negative, with many pulling back from fixed-supply assets like <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener nofollow">Bitcoin.</a> The United States seems to be leading the exodus, with a whopping $565 million outflow reported by Coinshares. This negativity is reflected in trading volumes, which have plummeted by 50% compared to the year’s average. 
<img loading="lazy" decoding="async" class="wp-image-306003 size-full" src="https://bitcoinist.com/wp-content/uploads/2024/06/A_239d9c.png?resize=508%2C400" alt="" width="508" height="400" data-recalc-dims="1"> 
Naturally, whispers are swirling about whether this marks the end of the highly anticipated crypto bull run. However, some analysts, like Rekt Capital, see a potential spring awakening within these seemingly harsh conditions. They argue that this period of consolidation, while painful in the short term, might be essential for a healthy long-term bull run. 
<blockquote class="twitter-tweet"> 
 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#BTC</a> 
 The fact that Bitcoin is struggling to breakout is beneficial for the overall cycle 
 Bitcoin has never broken out this early in the Post-Halving period 
 If it did, the cycle would be accelerated to such a point that the Bull Market would simply be shorter than usual 
 This… <a href="https://t.co/cQHKWy7hPE" rel="nofollow" target="_blank">pic.twitter.com/cQHKWy7hPE</a> 
 — Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1801298871437373828?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 13, 2024</a>
</blockquote> 
<h2 data-sourcepos="11:1-11:34" id="strong-rewriting-the-crypto-playbook-strong">Rewriting The Crypto Playbook?</h2> 
Rekt Capital draws parallels with previous post-halving cycles, where Bitcoin didn’t experience a significant breakout this early. They propose that a rapid early surge could lead to a shorter-than-usual bull market. 
In their view, the current consolidation phase, as evidenced by the Coinshares data, is a necessary reset button, allowing the market to resynchronize with the traditional halving cycle and pave the way for a “normal, usual bull run.” This perspective suggests that the current downturn might be a strategic pause, not a complete collapse. 
<img loading="lazy" decoding="async" class="aligncenter size-full" src="https://www.tradingview.com/x/EF349xNH/" width="2475" height="1163"> 
Coinshares went on to say that the withdrawals were concentrated in the US, which led the charge with outflows of $565 million. This was probably due to investors trying to reduce their exposure to fixed-supply assets. Other areas with $24 million, $15 million, and $15 million, respectively, were Switzerland, Canada, and Sweden in the negative sentiment. Cryptocurrency: A Market In Flux 
While Rekt Capital’s analysis offers a ray of hope, the immediate future remains uncertain. Bitcoin currently sits nearly 15% below its all-time high, a stark reminder of the market’s volatility. Despite the overall slump, some altcoins have managed to buck the trend, offering a glimmer of defiance in the face of the broader market chill. 
The significant outflows and price drops, as reported by Coinshares, paint a picture of a cautious market. Whether this is a temporary setback or a sign of a more prolonged crypto winter will depend on various factors, including future actions from the Federal Reserve and the broader economic climate. 
Featured image from Valley Sleep Center, chart from TradingView

Bitcoin Blues: Who’s Dumping Their Coins, How Much And Why?

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