TechFlow news, on March 17, according to the latest Bitfinex Alpha report, Bitcoin has further declined from its all-time high of $109,590 set on January 20, touching a low of $77,041 last week—a pullback of 29.7%, making it the second deepest correction in this bull cycle. While historical bull markets typically endure around 30% corrections before resuming upward trends, previous drawdowns in this cycle have been shallower, primarily due to institutional adoption and ETF-driven demand.
The report noted that U.S. spot Bitcoin ETFs continued to see outflows, totaling $921.4 million last week, indicating that institutional buyers have not yet returned to the market with sufficient strength to offset selling pressure. Short-term holders continue to face unrealized net losses, intensifying seller pressure. These investors—particularly those who bought within the past 7 to 30 days—are typically most prone to panic selling. Historically, when new capital inflows slow and cost basis trends shift, it signals weakening demand conditions.
Bitfinex Alpha believes the key factor is whether long-term holders or institutional demand will re-emerge at these lower levels. If better-capitalized investors begin absorbing supply, it could signal a renewed accumulation phase, potentially stabilizing price action and reversing market sentiment.
The report also pointed out that the U.S. economy stands at a crossroads: labor market resilience is waning, inflation is moderating, but consumer confidence is declining. Inflation remained low in February, but supply chain disruptions and tariff-related pressures could push prices higher in the coming months. Consumer confidence has fallen to its lowest level in over two years, inflation expectations have surged, and economic uncertainty is dampening household and business outlooks.
