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Crypto Potato 2025-08-12 18:23:48

Bitcoin in Warm But Not Overheated Zone: What Could Happen Next? (Bitfinex Alpha)

Over the last seven days, bitcoin (BTC) has recovered and reclaimed the range lows it hit earlier this month. Amid the recovery, analysts at the crypto exchange Bitfinex say the leading cryptocurrency has returned to a warm, but not overheated zone. According to the latest Bitfinex Alpha report, macroeconomic events will determine bitcoin’s next direction over the next few weeks as the market moves towards the end of this bull cycle. Warm But Not Overheated Zone Bitcoin’s latest recovery is evident in the United States spot exchange-traded fund (ETF) market. At the beginning of this month, spot ETF inflows turned negative, with investors withdrawing at least 1,500 BTC across four consecutive trading days. Analysts found that the market saw its largest four-day selling stretch between July 31 and August 5, amounting to $1.45 billion. However, the market saw a positive reversal between August 6 and 8, with inflows totaling more than $770 million. Even August 11 recorded positive flows exceeding $178 million. These inflows, supported by consistent BTC accumulation by crypto treasury companies, are the primary catalyst behind the market’s latest strength. Notably, BTC rallied close to its all-time high on Monday, climbing from $118,000 to $122,100. Although it had fallen to the $118,000 range at press time, demand from ETFs and crypto treasury companies could keep its value afloat. Between Range Highs and Lows Furthermore, Bitfinex has spotted a growing relationship between ETF flows and macroeconomic conditions in recent months. Analysts say the crypto market is increasingly becoming sensitive to macro events, and this week would be no different as Consumer Price Index (CPI) and Producer Price Index (PPI) data are due in the next few days. Bitcoin continuing with its current momentum largely depends on macro releases – the asset could either break to new highs or retest recent lows. Bitcoin faces the possibility of retracing to $110,000 in the near term. “Even so, the broader structural outlook remains constructive, underpinned by sustained institutional accumulation, expanding treasury adoption, and resilient spot demand,” analysts added. Meanwhile, the market shows a significant split between profit-taking and loss-realisation among coins currently in motion. About 70% of short-term holder supply is still held in profit, while the proportion of assets being sold for profit has eased to 45%. Market experts insist BTC will continue to oscillate between range highs and lows, the asset’s price moving above and below the cost basis of fresh buyers. The post Bitcoin in Warm But Not Overheated Zone: What Could Happen Next? (Bitfinex Alpha) appeared first on CryptoPotato .

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