Bitfinex reports that Bitcoin (BTC), has been trading in the same tight range between $91,000 and $102,000 over the last 81 days. This is because traders are waiting for more clear macroeconomic signals to make decisions.
The firm’s latest Alpha report highlighted that BTC has shown little directional momentum despite escalating global geopolitical tensions. The firm’s latest Alpha report highlighted that BTC has shown little directional momentum despite escalating global geopolitical tensions.
The uncertainty has affected altcoins as well. The broader altcoin market has significantly underperformed Bitcoin, with meme coins like PEPE suffering dramatic losses — declining 46.4% over the past month.
Meanwhile, Bitcoin’s price stability suggests that capital flows away from altcoins and into the leading crypto, further reinforcing its role as the dominant digital asset.
Altcoins tank
Within just 14-days, altcoins’ market capitalization has fallen by $234 Billion. Bitcoin is still relatively stable despite the recent downturn. This indicates a divergence growing between Bitcoin and the other cryptos.
According to the report, this trend highlights Bitcoin’s increasing correlation with macroeconomic conditions and its maturation as a risk asset.
Inter-Exchange Flow Pulse – another important indicator – turned down on the 15th of February for the very first time since 2024. The shift in the IFP suggests traders are reducing risk, which could lead to more downside pressure.
The IFP is still above the 90-day moving mean, which leaves room for potential recovery.
Realized losses
Bitcoin investors, despite the price fluctuations and volatility in the market have suffered some of the biggest losses realized during the current bull-market cycle.
STHs have been most affected. Losses for the cohort totaled $520 million, a level similar to those seen during previous market downturns.
Then,, Long-term holders (LTHs) have continued to hold their positions, reinforcing the sentiment that Bitcoin’s consolidation phase is a natural correction within an ongoing bull market.
While bullish catalysts, such as Abu Dhabi’s investment in BlackRock’s Bitcoin exchange-traded fund (ETF), have provided some support, traders remain wary.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
