Optimistic Forecasts Appear Bleak as Bitcoin, Ethereum Keep Trending Lower, BTC and ETH Flows Diverge
The weekend selling in the crypto market occurred despite a number of recent optimistic forecasts predicting everything from a bottoming out to an expected break in the correlation between crypto and traditional assets this spring.
Today, bitcoin (BTC) tested USD 37,500, while ethereum (ETH) bounced only from USD 2,600. At 17:49 UTC, BTC traded at USD 38,712 and was up less than 1% in a day, trimming its weekly losses to 8%, and increasing its monthly gains to 6%. ETH stood at USD 2,713, after increasing 2% in a day. The price was down 6% in a week and up almost 6% in a month.
Last week, digital asset investment products saw inflows totaling USD 109m, or 45% more than a week earlier, despite recent price weakness and perceived negative impact from the looming conflict in Eastern Europe, per CoinShares data. The Americas were responsible for 92% of these inflows. Meanwhile, inflows in the BTC investment products jumped from USD 25m to almost USD 89m in a week. ETH saw outflows worth USD 15m, compared with USD 21m inflows a week earlier.
Meanwhile, on Sunday, Du Jun, Co-founder of the crypto exchange Huobi, told CNBC that the next BTC bull market may not come until late 2024.
Referring to bitcoin’s four-year halving cycle, Du Jun said that the entire crypto market tends to follow these cycles, with peaks in prices following after each new bitcoin halving.
“If this cycle continues, we are now at the early stage of a bear market,” the Huobi co-founder said, before admitting that crypto prices are still notoriously difficult to predict because there are so many other factors that can affect the market as well.
The somewhat pessimistic comment about the current state of the market stands in contrast to several optimistic takes
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