Bitcoin's recent price drop has sent shockwaves through global financial markets, erasing billions in market value and raising questions about investor confidence in the world's largest cryptocurrency.
The 40% decline from its peak is not unprecedented in crypto markets, but the absence of dip buyers is a notable departure from historical trends. Traditionally, price corrections attract 'dip buyers' eager to accumulate at discounted levels, but this time around, demand appears subdued.
ETF outflows have also been a clear signal of changing sentiment, with investors pulling capital from crypto-linked funds after months of strong inflows. This shift suggests portfolio rebalancing and reduced risk appetite among institutions.