Bitfinex Says “Bitcoin Has a Recent Crash and a Rise”, Shares Expected Date for Bullishness

Analysts from cryptocurrency exchange Bitfinex have detailed their latest outlook for Bitcoin and other cryptocurrencies.

Bitfinex has released a new report revealing a significant difference in market performance between Bitcoin and Ethereum, especially in the ETF space.

According to the report, Ethereum ETFs continue to face challenges, while Bitcoin ETFs have shown resilience, increasing confidence in the world’s largest cryptocurrency as the fourth quarter approaches.

The report notes that Ethereum ETFs have struggled, especially compared to their Bitcoin counterparts. Large capital outflows have negatively impacted Ethereum’s market performance, leading to a sharp 40% drop in prices as of early August. This decline has also caused the ETH/BTC ratio to fall to its lowest level in more than 1,200 days.

Emerging Ethereum ETFs such as BlackRock’s iShares Ethereum Trust have seen some positive inflows. However, these gains were overshadowed by significant outflows from more established products like Grayscale’s Ethereum Trust (ETHE). Aggressive selling by major market makers including Jump Trading further exacerbated the situation.

In contrast, Bitcoin ETFs have held steady with continued inflows and relatively stable price performance. Despite challenges such as oversupply in the market, investor confidence in Bitcoin remains strong. Bitfinex suggests that Bitcoin will follow its historical pattern of strong performance after a year of halving, with a particularly bullish fourth quarter.

The report also highlights the potential for a final round of declines to find a bottom for Bitcoin in the third quarter, followed by a strong bullish trajectory.