The Bitcoin market is showing signs that a bear market may have begun, according to a recent signal. Bitcoin is on track to have its fifth consecutive negative weekly close, which has historically only occurred during bear market periods. Some argue that the current pullback is mild compared to previous bull markets, with Bitcoin experiencing a 12% drop from its recent high. However, others point out that this decline is in line with previous bull market patterns and note that four consecutive red weekly candle events have occurred in the past. Surprisingly, Bitcoin sell pressure has also affected newly launched Bitcoin spot ETFs, with outflows from the Grayscale Bitcoin Trust surpassing inflows to other Bitcoin ETFs. Investment analyst Jim Bianco suggests that “degen retail” investors, who may panic sell at the first sign of trouble, have been the dominant buyers of Bitcoin ETFs. However, Bloomberg ETF analyst Eric Balchunas points out that many investors have not reported their ETF holdings yet, and it takes time for advisors to get involved. He advises against going against large financial institutions and their track record in supporting ETFs.
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The Bitcoin Bear Market May Have Already Started, Signal Shows
