Bitfinex report: Crypto market caution intensifies, but Bitcoin still shows resilience

PANews reported on January 13 that Bitfinex Alpha released its latest report saying that last week, Bitcoin fell to a low of $91,430, and its correction trend continued after hitting a record high of $108,100 on December 17, 2024. Bitcoin continued to fall on Monday, and market caution intensified due to the surge in U.S. Treasury yields and continued outflows from Bitcoin spot ETFs. Bitcoin has now fallen by more than 15%. It is worth noting that in the past 12 trading days, ETFs have experienced outflows on 7 days, of which $718 million flowed out in just two days, in stark contrast to the inflow of nearly $2 billion in early January. U.S. Treasury yields climbed to a 14-month high of 4.79%, attracting institutional funds to withdraw from riskier assets such as Bitcoin. Historically, Bitcoin has responded quickly to soaring yields, but this time the impact was exacerbated by news that the U.S. Department of Justice plans to liquidate $6.5 billion worth of confiscated Bitcoin.

Despite macro pressures, Bitcoin has shown resilience - it has risen 42% since the U.S. election, outperforming stocks that have erased their post-election gains. However, as the Federal Reserve signals fewer rate cuts and tighter financial conditions, Bitcoin could face more volatility in the short term. However, pro-cryptocurrency regulatory policies introduced by the incoming administration of U.S. President-elect Trump could limit deeper losses and keep Bitcoin strong in the long term.