Is the Bitcoin Bull Over – or Is It Beginning? Experts weigh in.

The crypto market regained some ground on Friday, but some traders may still be feeling the pinch.

Bitcoin price hit a weekly low of $59,573 earlier today.– Especially last month, the high price of 73,000 dollars is lost CoinGecko. By midday, Bitcoin was up nearly 9 percent and was trading at $65,000. What does it give?

“Ultimately, behind the scenes, it's the macro that drives the bus,” said Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors. Decrypt. “And so [last] On Friday, we walked into this perfect storm of bad news.

As geopolitical tensions in the Middle East grew last week, stronger-than-expected economic data from the U.S. dampened investors' views on Federal Reserve rate cuts, Farrell said. The implication is that in times of uncertainty, investors flock to the greenback to shelter from a downturn, he said.

“People are going to get into assets very quickly where they can send payments, and that's in the U.S. dollar, so I think you're going to see a lot of panic selling,” Farrell said. “On the back of that, in terms of financial conditions, we had a very warm CPI print.”

The Bureau of Labor Statistics' Consumer Price Index (CPI) indicates inflation. It did not change by 3.5% Compared to the previous release, in the 12 months to March. The U.S. central bank may be forced to hold rates longer to bring inflation down to the Fed's 2% annual goal, said Zach Pandle, managing director of research at Grayscale.

“Perspectives around the Federal Reserve's rate cut have been delayed to a lot in the middle of this year,” he said Decrypt. “The Federal Reserve is now moving away from deflation, at least at the margin, and that has had a negative impact on many assets.”

In crypto, Pandl sees one key factor that may be contributing to Bitcoin's recent weakness. He said inflows into spot Bitcoin ETFs, “which were at their peak in February and March,” have slowed.

Since last Friday, for example, spot Bitcoin ETFs have seen a total of $319 million in net outflows, according to data from the analytics platform. Coinglass. Still, market participants only had a few months to digest the investment vehicles approved in January.

“As these products become more widely accepted among financial advisors and platforms, we believe that many of us will have another need for ETFs,” Pandl said. But they've leveled off very recently and you don't have that positive incentive for price.

Although Bitcoin's turmoil has caught the attention of crypto traders, heavy losses among so-called altcoins may contribute to the crypto community's turmoil, pseudo-crypto influencer @basedkarbon tweeted after popular mining coins such as Solana Dogwhiphat (YF) fell last Friday.

“Alts woke up very hard this weekend and now most of it [Crypto Twitter] He thinks the bull market is over,” Bill wrote Monday.

Based on a number of factors, the bull market doesn't appear to have run out of steam just yet, said Glassnode analyst Brett Singer. Decrypt. When we look at the value of Bitcoin—also known as Bitcoins—when people buy them MVRV Z-Score– The market is similar to previous cycles, he said.

“These events certainly have an impact, but the foundation itself says we're still growing in that direction,” Singer said of the shocks in the Middle East. There is still momentum, and the market is similar to what it has been in previous cycles.