Bitfinex Sees Bitcoin One Step Away from Exiting Bear Market

Bitcoin has been struggling to surpass $70,000 for over two months, hovering around $62,000 to $65,000. However, experts believe that the broader macro market conditions are moving in favor of the apex crypto.

The Bitfinex Alpha report states that two out of three conditions necessary for a BTC rally have been met. These conditions include lower expected rates and already-loose financial conditions, which have contributed to a decrease in inflation rate from 3.50% in June to 3.40% in July.

Short-term Treasury yields have dropped, and stocks like the S&P 500 have soared, increasing investors' appetite for risk assets. However, capital flowing through the equities market, tech sector, and AI market has not yet entered the crypto ecosystem, which is seen as the final piece of the puzzle for a smooth rally.

The Bitfinex report notes that if this capital flow enters the crypto market, it can lead to a price surge for BTC. Conversely, prolonged negative flow could send bitcoin to a lower support level around $57,000.