Key Takeaways
- CryptoQuant CEO warns that Bitcoin’s price action remains stagnant due to dried-up liquidity.
- BitMEX co-founder Arthur Hayes previously predicted a drop to the $70,000 range.
- Technical indicators suggest BTC is nearing its bottom, with a potential consolidation phase ahead.
Bitcoin (BTC) has plunged more than $22,000 in the past few weeks, hitting multi-month lows. While traders hope for a rebound, market analysts caution that a recovery may take time as liquidity remains scarce.
Ki Young Ju, CEO of crypto analytics firm CryptoQuant, warned that Bitcoin’s price movement will likely remain muted until liquidity returns.
ETF Outflows and the Market’s Distribution Phase
In a post on X, Ju highlighted that Bitcoin is currently straddling the boundary between a bull and bear market, with weak demand from spot BTC exchange-traded funds (ETFs) exacerbating the slowdown.
Ju noted that Bitcoin is currently in a “distribution phase,” where prices decline as new liquidity dries up. He compared the current market conditions to early 2024, suggesting Bitcoin may consolidate between $75,000 and $100,000 for an extended period.
Bitcoin ETFs, which were instrumental in driving prices to all-time highs, have seen record outflows in recent weeks.
BlackRock, the largest Bitcoin ETF issuer, has faced over $1.2 billion in outflows in just two days.
However, Ju pushed back against claims that BlackRock itself was selling Bitcoin, calling such narratives “ridiculous fear-mongering” from so-called top-tier analytics firms.
Despite the current downturn, Ju emphasized that BTC is still following its typical two-year market cycle.
He expects the bull market to continue until at least April 2025, making the next few months a critical inflection point.
Is Bitcoin Nearing a Bottom, or Is More Pain Ahead?
BTC’s prolonged decline has fueled concerns of a deeper market correction, with its total market capitalization nearing the previous cycle’s high.
Market observers are now debating whether Bitcoin has bottomed out or if further downside is imminent.
BitMEX co-founder Arthur Hayes previously predicted Bitcoin could fall to the $70,000 range amid increased sell pressure and uncertainty surrounding Donald Trump’s pro-crypto stance.
In a recent post on X, Hayes said Bitcoin’s price action suggests “one more violent wave down below $80K, most likely over the weekend, then crickets for a while.”
Market analysts point out that Bitcoin corrections of up to 30% are still considered within the normal range of a bull market.
With Bitcoin down 28% from its peak and trading around $78,331, they anticipate a potential bottom between $75,000 and $77,000.
Technical indicators also signal a possible turning point.
One analyst noted that Bitcoin has reached its Fibonacci golden ratio range of $79,000 to $72,000.
Meanwhile, the Fear and Greed Index has plunged to 10—levels not seen since June 2022.
However, stablecoin supply has surged past $215 billion, suggesting that sidelined capital could soon flow back into BTC and altcoins, providing the liquidity needed for a rebound.
For now, the market remains in limbo, waiting for signs of renewed demand before BTC makes its next decisive move.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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