Bitcoin's Position in a Stable Yet Not Overheated Sector: Possible Outcomes? (Bitfinex Alpha)

Bitcoin, after a recent recovery, is now in a stable but not overheated zone, according to Bitfinex analysts. The cryptocurrency's future direction will depend on macroeconomic events as the market approaches the end of the current bull cycle. The recent recovery is due to consistent Bitcoin accumulation by crypto treasury companies and positive investment flows in the US spot exchange-traded fund (ETF) market. Bitfinex has also noted an increasing correlation between ETF flows and macroeconomic conditions.

While there are concerns about Bitcoin retracing to $110,000, analysts maintain a positive long-term outlook due to sustained institutional accumulation, expanding treasury adoption, and resilient spot demand. However, Bitcoin's continued momentum is largely contingent on upcoming macroeconomic data releases.