Bitfinex Report: Bitcoin Experiences Deepest Correction of This Cycle, Crypto Market Gradually Enters Balanced Consolidation Phase

According to the latest Bitfinex Alpha report, Bitcoin has experienced its deepest correction of this cycle, with volatility narrowing and momentum weakening, indicating that the market is shifting from a liquidation-driven decline to a more balanced consolidation environment. On-chain data shows that most of the recent decline has been absorbed by the demand zone between $60,000 and $69,000. Holders near their break-even point have not accelerated selling, which helps stabilize prices and form a sideways pattern. Institutional capital flows remain cautious, with Bitcoin ETFs seeing a net outflow of approximately $166 million in a single week, and Ethereum-related products also experiencing continuous redemptions, indicating that sustained accumulation has not yet returned. Although weekend inflows provided initial stabilization signals, overall liquidity remains relatively low. The Realized Profit/Loss Ratio continues to contract to historically defensive levels, suggesting limited capital expansion within the network. Derivatives positions have returned to normal, with funding rates trending neutral to slightly negative, reducing liquidation risks but also limiting upward acceleration.