Exchange-traded fund inflows and crypto treasury demand were key to Bitcoin’s all-time high, but they’re now causing its decline, says NYDIG’s Greg Cipolaro.
The key drivers of Bitcoin’s rally to a peak in October are now what’s causing its price to drop to multimonth lows, with crypto treasury reversals and crypto fund outflows suggesting “actual capital flight” rather than purely negative sentiment, says NYDIG.
NYDIG head of research Greg Cipolaro said in a note on Friday that exchange-traded fund (ETF) inflows and digital asset treasury (DAT) demand were key to Bitcoin’s (BTC) last cycle.
However, Cipolaro said a major liquidation event in early October saw ETF inflows reverse, treasury premiums collapse and stablecoin supply slip, signalling liquidity leaving the system, in “classic signs,’ the loop was “losing momentum.”
