Bitfinex Report: Bitcoin Experiences the Deepest Correction in This Cycle, Crypto Market Gradually Enters a Balanced Consolidation Phase

Bitfinex Alpha's latest report indicates that Bitcoin has experienced the deepest pullback in this cycle, with volatility narrowing and momentum weakening, showing that the market is shifting from a liquidation-driven decline to a more balanced consolidation environment.

On-chain data shows that most of the recent drop has been absorbed by the demand zone around $60,000 to $69,000, where breakeven holders have not accelerated their selling, helping to stabilize prices and form a sideways pattern. Institutional capital flows remain cautious, with Bitcoin ETFs seeing a net outflow of approximately $166 million in a single week, and Ethereum-related products also experiencing continued redemptions, indicating that sustained accumulation has not yet returned. Although weekend inflows provided an initial stabilization signal, overall liquidity remains low. The realized profit and loss ratio continues to shrink to historically defensive levels, indicating limited capital expansion within the network. Derivatives positions have returned to normal, with funding rates trending neutral to slightly negative, reducing liquidation risk but also limiting the acceleration of upward movements.