K33 Research: The risk of downward fluctuations continuing to expand due to bullish liquidation is still quite substantial

According to Bloomberg, Bitcoin is hovering around its lowest level in about two weeks due to reduced inflows into spot Bitcoin ETFs and concerns over the narrowing scope of U.S. interest rate cuts. Since hitting a record high of nearly $73,798 on March 14th, the cryptocurrency has been falling almost daily, raising questions about whether this cryptocurrency has temporarily peaked. As it slides, there's uncertainty over whether inflation above target will lead Federal Reserve policymakers to lower interest rate expectations at Wednesday's meeting, signaling an unfavorable environment for speculative investments. Meanwhile, demand for the U.S. spot Bitcoin ETF launched on January 11th has cooled.

 

So far these products have received net inflows of $11.6 billion but investors withdrew from the group on Monday. According to CoinGecko data, since last week when total crypto market value reached $2.9 trillion it has now fallen to $2.45 trillion; K33 Research suggests that bullish bets made with derivatives could be further hit indicating potential obstacles for a quick recovery in digital asset markets . Therefore ,the risk of downward volatility continuing to expand due to long liquidation remains quite large.