Bitcoin (BTC) has experienced a period of consolidation before dropping below $90,000. The "Bitfinex Alpha" report suggests that macroeconomic uncertainty is contributing to this decline. Two significant events, a hack involving crypto exchange Bybit and the expiration of S&P 500 options, have exacerbated the market downturn. Bitcoin's decline is not isolated, as Ethereum (ETH) and Solana (SOL) have also retreated. Memecoins, known for their volatility, have experienced a significant decline. The broader financial market, including the S&P 500, has also struggled. Bitcoin exchange-traded funds (ETFs) have seen a slowdown in inflows, indicating reduced institutional interest. Ethereum ETF participation remains weak. Capital inflows in the perpetual futures market have also reduced, with open interest decreasing. This decline in leveraged positions suggests traders are scaling back exposure. On-chain data indicates negative growth in Bitcoin demand, increasing the risks of a deeper correction. The negative sentiment among investors mirrors levels seen in 2024.



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