Recently, US Bitcoin ETFs ended weeks of stagnation, with nearly $1 billion flowing in over six days. BlackRock, Morgan Stanley, and Grayscale’s products alone attracted over $930 million, driving a slight short-term rebound in Bitcoin’s price.

Current price situation:

At the time of the report’s publication, Bitcoin was around $63,000, down slightly in the last 24 hours but up 1% in the last seven days, with a weekly high of $66,891. This represents a near 50% drop from its October all-time high of $126,080, previously pressured by a wave of liquidations, Middle East conflict, and inflation.

Background of the decline:

Large-scale liquidations, Middle East conflicts, and inflationary pressures have collectively dragged down Bitcoin’s performance.

Two institutions bearish on the market outlook:

CoinShares: Bitcoin may have approached or reached a temporary bottom, but there is no significant upside potential. Escalating tensions between the US and Iran and rising oil prices could push up inflation, while higher inflation and rising expectations of interest rate hikes would suppress cryptocurrency prices.

NYDIG: This year, it has been the worst-performing major asset class; the current decline is more due to supply-side mechanisms and supply-demand imbalances than simply risk appetite. Bitcoin has underperformed US Treasuries, silver, and the Swiss franc. If we refer to the 2022 bear market, the potential low point could be between $38,000 and $39,000.