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\n\t\t\t\t\t\t\t\t\tIf the capital flowing through the equities market moves into the crypto ecosystem, BTC could see a significant price breakthrough.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
For over two months, bitcoin has struggled below $70,000, hovering around $62,000 to $65,000. Still, experts believe that the broader macro market condition is moving in favor of the apex crypto.<\/p>\n
Crypto exchange Bitfinex stated<\/a> in its latest edition of the Bitfinex Alpha report that two of the three conditions that can support a BTC rally have been met. If successful, this can supercharge the next market phase, which is expected to be more favorable for the bulls.<\/p>\n The Bitfinex report outlined \u201clower expected rates and already-loose financial conditions\u201d as the two conditions that have already been met.<\/p>\n The inflation rate fell from 3.50% in June to 3.40% in July, partly due to a drop in energy prices. It is expected that the Federal Reserve may not raise interest rates in the coming weeks. With short-term Treasury yields dropping and stocks like the S&P 500 soaring, investors have increased their appetite for risk assets.<\/p>\n Meanwhile, tech-focused hardware and artificial intelligence (AI) infrastructure have brought in \u201ca separate source of supply-driven inflation.\u201d However, this capital has failed to flow into the crypto market.<\/p>\n The Bitfinex Alpha report claims that if the capital flowing through the equities market, the tech sector, and the AI market can enter the crypto ecosystem, a price surge for the largest digital asset will naturally follow. This is what it tags as the third condition to be met for a smooth rally.<\/p>\n Presently, capital flow through spot Bitcoin exchange-traded funds (ETFs) has decreased<\/a>. For instance, the fund lost around $385 million in weekly flow during the same week that equities like the S&P 100 soared.<\/p>\n Additionally, corporate Bitcoin treasuries have turned negative. Strategy, the leading BTC holder, has slowed down<\/a> its bitcoin acquisitions. It even sold some of its holdings in separate weeks this year alone.<\/p>\n Stablecoin supply has also reduced, staying below its May record.<\/p>\n \u201cIn such a thin market, relatively small changes in flows could produce an outsized move in either direction,\u201d Bitfinex explained.<\/p>\n<\/blockquote>\n This indicates that if capital flows favor the crypto market, BTC could once again attain or surpass $70,000. Conversely, a prolonged negative flow can send bitcoin to a lower support level, around $57,000.<\/p>\nTwo of Three Conditions Met<\/h2>\n
The Final Piece of the Puzzle<\/h2>\n
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