Bitcoin’s recent decline is causing traditional investors to proceed with caution, highlighting the significance of upcoming flow data to assess market sentiment.

Traditional investors, also known as tradfi, are becoming more cautious as Bitcoin’s price has dropped by over 12.5% from its recent all-time high on Mar. 14. A research report from Bitfinex points out that this latest retreat is one of the largest price dips seen since spot Bitcoin exchange-traded funds (ETFs) were introduced earlier this year.

Despite the significant increase in inflows into spot Bitcoin ETFs, which surpassed a billion dollars in a single day last week, recent data indicates a stabilization in flows, causing some market observers to pause and reassess the situation.

“It would not be a surprise to see a period now in which the market seeks some equilibrium after the initial enthusiasm we have seen.” – Bitfinex

Bitcoin has experienced remarkable growth since the beginning of 2024, with a 74% surge in value and a 90% increase from its post-ETF slump lows. However, recent sharp corrections, occurring twice within two weeks, suggest a potential slowdown in the strong uptrend observed since the latter half of 2023. While this does not necessarily indicate a bearish outlook, it may signal a period of consolidation for the broader crypto market, according to analysts at Bitfinex.

“The flow data from the upcoming week will be crucial in shedding light on tradfi investors’ sentiment towards Bitcoin, and in particular their reaction to the sharp corrections last week.” – Bitfinex

The analysts emphasize that the flow data for the upcoming week will play a crucial role in understanding investors’ sentiment towards Bitcoin and evaluating the confidence of the broader investment community in its stability.

As of now, Bitcoin is facing selling pressure and is trading below the $65,000 mark according to CoinMarketCap data. Markus Thielen, Founder of 10x Research, anticipates Mar. 19 to be a pivotal day for Bitcoin, suggesting a possible continuation of correction if ETF inflows do not meet expectations amid recent market volatility.

However, Thielen also noted that despite the potential for a deeper correction, the market can still argue that Bitcoin will climb significantly higher in the next few months as this bull market is likely to continue.

For more insights on Bitcoin and the cryptocurrency market, visit Global Crypto News.

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