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 of $60,000 to $69,000, with these near breakeven holders not accelerating their sell-off, which helps stabilize prices and form a sideways pattern.

Institutional fund flows remain cautious, with a net outflow of approximately $166 million from Bitcoin ETFs in a single week, and Ethereum-related products also seeing continued redemptions, indicating that sustained accumulation has not yet returned. Although weekend inflows provided initial stabilization signals, overall liquidity remains low. The realized profit-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 risks but also limiting the acceleration of upward movements.