Is the Bitcoin bull run over? Or are you just getting started? Expert Opinion

Cryptocurrency markets found some ground on Friday, but some traders may still be panicking.

Bitcoin price hit a weekly low of $59,573 this morning.—It is noticeably lower than the all-time high of $73,000 last month. CoinGecko. By midday, Bitcoin was up about 9% and trading at $65,000. What do we offer?

“Ultimately, it’s the macro that drives the bus,” said Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors. decryption. “And (last) Friday we were met with a perfect storm of bad news.”

“Investors around the world were shocked last week as economic indicators in the U.S. were stronger than expected, clouding investors’ outlook for a Federal Reserve interest rate cut and increasing geopolitical tensions in the Middle East,” Farrell said. This means that in times of uncertainty, investors are flocking to the greenback to avoid fallout, he said.

“I think we’ve seen a lot of panic selling because people are running toward assets that can transfer payments, which is the U.S. dollar,” Farrell said. “In the background there was a CPI print that was really hot from a financial picture perspective.”

The Bureau of Labor Statistics’ Consumer Price Index (CPI) estimates that inflation It remained unchanged at 3.5% Results for the 12 months through March compared to previous releases. This has sparked concerns that the U.S. central bank may have to keep interest rates higher for longer to keep inflation down to the Fed’s target of 2% per year, according to Zach Pandl, Grayscale’s managing director of research. .

He said, “The perception of the Federal Reserve (Fed) interest rate cut has shifted from the middle of this year to much later.” decryption. “The Fed is now moving away from cutting interest rates, at least on the margins, and that has had a negative impact on many assets.”

Within cryptocurrencies, Pandl identifies one key factor that could be contributing to Bitcoin’s recent weaknesses. He said inflows into spot Bitcoin ETFs, which were “booming in February and March,” have slowed recently.

For example, spot Bitcoin ETFs have seen a total net outflow of $319 million since last Friday, according to data from the analytics platform. coin glass. Nonetheless, market participants only had a few months to digest the investment vehicles approved in January.

“Many of us believe we will see another surge in demand for ETFs as these products move through the approval process among a wider range of financial advisors and platforms,” Pandl said. “But it has plateaued recently and there are no positive catalysts for prices.”

After popular meme coins such as Solana’s Dogwifhat (WIF) plummeted last Friday, anonymous cryptocurrency influencer @basedkarbon said on Twitter that while Bitcoin’s rattle has caught the attention of cryptocurrency traders, so-called altcoins He said excessive losses in the liver could be contributing to unrest in the cryptocurrency community.

“Alts nuked it so hard this weekend that most (Crypto Twitter) now think the bull market is over,” the account wrote on Monday.

Based on a number of factors, the bull market does not appear to have run out of steam yet, said Glassnode analyst Brett Singer. decryption. We look at the current price of Bitcoin compared to when people bought it. Also known as Bitcoin. MVRV Z-score—The market is similar to previous cycles, he said.

“These events are certainly having an impact, but the fundamentals themselves tell us that we are still growing in that direction,” Singer said of the shock in the Middle East. “There is still momentum and the market is behaving very similarly to previous cycles.”