Bitcoin has experienced a significant decline of over 10% this week, currently trading at approximately $95,340.
Despite this downturn, economist Henrik Zeberg remains optimistic about Bitcoin's potential for a Christmas rally, suggesting that it could surpass its previous record of over $108,200. However, Zeberg warns that this surge may be short-lived and that Bitcoin could potentially drop to around $16,000 after reaching a cycle top.
Zeberg also predicts a forthcoming altcoin rally as Bitcoin dominance is expected to decline, which could create increased volatility and potential gains in that sector. He cautions that this altcoin rally may represent the final blow-off before a significant bear market sets in.
The recent outflows from Bitcoin ETFs, totaling $671.9 million, indicate a potential change in investor sentiment as the market grapples with volatility. These outflows could have implications for market liquidity and investor confidence.
It is important for investors to monitor the interplay between Bitcoin's price movements, altcoin dynamics, and ETF performance in this highly volatile market.