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 is still consolidating in the $66,000–$70,000 range after its decline, marking the deepest pullback in this cycle. The volatility has narrowed and momentum has weakened, showing that the market is shifting from a liquidation-driven downturn to a more balanced consolidation environment.On-chain data shows that most of the recent decline has been absorbed by the demand zone between $60,000 and $69,000. These near breakeven holders have not accelerated their selling, which helps stabilize prices and form a sideways pattern. Additionally, institutional capital flows remain cautious, with Bitcoin ETFs experiencing a net outflow of approximately $166 million 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 stability 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, which reduces liquidation risk but also limits the acceleration of upward movements.