Bitcoin's 90-Day Stagnation: Awaiting the Next Major Move

Bitcoin has been in a state of consolidation for nearly 90 days, with market momentum remaining stagnant, according to a report by Bitfinex. The cryptocurrency has been fluctuating between $91,000 and $102,000 over the past three months, with no significant price movements in either direction.

The lack of momentum in the Bitcoin market can be attributed to several factors, including macroeconomic uncertainty and the increasing correlation between Bitcoin and traditional markets. The S&P 500 has failed to break through the 6,000-point mark, leading to a decrease in risk appetite and further suppressing speculative participation in risk assets, including Bitcoin.

Institutional demand for Bitcoin has also slowed down significantly. Bitcoin ETF inflows peaked at 18,000 bitcoins per day in November 2024, and net outflows have occurred since then, with $360 million withdrawn on February 20th alone. This decrease in institutional participation, coupled with a sharp decline in leveraged trading activity, indicates that the market is undergoing a more widespread contraction.

Bitcoin is currently at a crucial crossroads, and after nearly 90 days of consolidation, market participants are awaiting a catalyst to drive the next major move in the cryptocurrency. The direction of this move is likely to be influenced by macroeconomic trends and may have significant implications for the broader market.