Bitfinex alpha | Bitcoin reduces heat – turn on new turns for red alarms or stepping stones?

February 26th Bitfinex alpha | Bitcoin reduces heat – turn on new turns for red alarms or stepping stones?

Last week, Bitcoin was trapped within familiar transactional ranges. The market’s growth momentum does not appear to show signs of prosperity.

On Friday, February 21st, the market suddenly shook violently about S&P 500 options sellers, along with news about the Buybit Hacking Hack. weekend.

Not only Bitcoin, but the entire crypto market is in the adjustment phase after the breakthrough at the end of 2024. Bitcoin (-5.9%), Ethereum (-16.9%) and Solana (-33.1%) will fall free after a significant increase in February. November and December last year. Most notably, the MemeCoins group, which once flew in December, also flew to 37.4%.

This decline is exacerbated as Bitcoin is increasingly sticky to traditional assets due to the instability of global financial markets. The fact that the S&P 500 missed bookings at a milestone of 6,000 made investors psychologically shy and reduced their level of participation in dangerous assets.

Bitcoin, SPX and major electronic assets performance in 2025
(Source: Bitfinex, S&P)

Demand from large organizations also declined significantly. Cash flow to Bitcoin ETFs, which reached 18,000 BTC per day in November 2024, has been reversed to cash flow. On February 20th, a maximum of USD 360 million was withdrawn from the Bitcoin ETF.

Not only does it turn cars, but it also uses trading activities have also been significantly reduced. These indications indicate that the market is entering a phase of shrinking scale.

After nearly 90 days of passing, Bitcoin is still in the middle of a period of time where there is enough powerful catalyst waiting to explode. The next direction for Bitcoin is likely to depend on macroeconomic factors and may be critical. On the other hand, the US economy is not very positive. Confidences among consumers are declining, but expectations of inflation can be ruptured, while the Federal Reserve’s price management efforts (FEDs). According to the latest research from the University of Michigan, consumer psychology has plummeted, reaching its lowest level in over a year. Americans are preparing for higher inflation as they expect to increase inflation next year to 4.3% compared to 3.3% the previous month. This change shows more careful psychology, which can slow down spending and economic activity. Furthermore, the White House proposal for import taxes has increased inflationary pressures and partially reversed the process of cooling inflation over the past two years.

University of Michigan – Consumer’s 1 year expectation of inflation

Meanwhile, the housing market slowly saw a decline in new home constructions by 8.4% in January. The rate is still high.

Construction of a new residential area (source: US Census Bureau)

Contractors are struggling to launch new projects due to increased costs, draining their construction profits. Limited new supply will raise housing prices and make it even more difficult for the Federal Reserve to target inflation at 2%. Without a big policy that will help remove supply barriers, the dream of owning a home at a comfortable price will remain far away in the near future.

The cryptocurrency market is in a struggle between motivations for price rises and great risks. Strategy™ has announced plans to issue US$2 billion worth of converted bonds, buy more Bitcoin and serve business purposes.

In other developments, the US Senate formally approved Howard Lutnick as Minister of Trade. This will make important changes to the management of your digital assets. A loyal supporter of Bitcoin and investing in Tether, Lutnick is expected to promote more open policies, helping Crypto move further into mainstream financial flows . Furthermore, Latnic’s trade position, particularly the support of former President Trump’s tariff policy, will have an impact on financial markets.

However, not all news is positive. BYBIT is suffering from a US$1.5 billion hack. This is one of the most serious security cases in the history of code. The transaction floor confirms that solvency is still possible, but the incident still raises concerns about an increase in security holes and an increase in sophistication in cyberattacks.

We pray for “Green” trading week!
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