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

According to the latest Bitfinex Alpha report, Bitcoin has experienced its deepest correction in the current cycle, with volatility narrowing and momentum weakening, indicating a shift from liquidation-driven declines 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 breakeven have not accelerated selling, helping to stabilize prices and form a sideways pattern. Institutional fund 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.