10x Research: Bitcoin will correct to $63,000! Altcoins and Meme coins have reached short-term highs

This site (120bTC.coM): Recently, Bitcoin and Ethereum have experienced significant price corrections, which has attracted widespread attention from market participants. 10x Research released a latest report stating that there are multiple factors at play behind this phenomenon, including market structure issues, the implementation of technology upgrades, changes in ETF capital inflows, and fluctuations in overall market sentiment, and predicted that Bitcoin may fall to $63,000. The upward trend has just resumed. The reasons in the report are as follows:

Bitcoin market structure is fragile

First of all, in terms of market structure, 10x Research emphasized the fragility of the Bitcoin market structure, It was pointed out that Bitcoin experienced an "outside day", that is, during the same trading day, the price of Bitcoin reached a new high, but also fell below the previous day's low. This price action shows the extreme volatility and uncertainty in the market and hints at the possibility of a deeper and longer correction, leading 10x Research analysts to worry about Bitcoin's future returns, arguing that they will become more volatile and unpredictable. predict.

ETF fund inflows slowed

Although Bitcoin spot ETF flows still showed net inflows, the 10x Research report pointed out that Bitcoin failed to maintain its upward momentum during most U.S. trading hours. Instead, its price rose only a few hours before the U.S. ETF opened, driven largely by confidence in continued buying by BlackRock clients.

10x Research also noted that Bitcoin failed to rebound during last night’s European trading session – the first time in a while. Buyers pre-purchasing ETFs appear to have disappeared, and with recent underperformance of ETF inflows, the market is concerned about the "sustainability" of ETF inflows. Although Grayscale's sell-off is relatively low at the same time, the lack of market confidence, This led to a sharp sell-off in Bitcoin during the Asian trading session.

ETH faces challenges and may drag down BTC

On the other hand, Ethereum’s recent gains were mainly driven by expectations for the Dencun upgrade, but now it faces a test of its basic profitability. Despite benefiting from the DeFi summer and NFT minting bull market, its current valuation appears disconnected from fundamentals. Additionally, the Dencun upgrade is expected to primarily benefit second-layer blockchains, potentially diluting Ethereum’s gains unless transaction volumes surge.

As for the prospects of Ethereum ETF approval, the report states that it seems less optimistic, with analysts estimating that the probability of approval is only 30%. This uncertainty may cause Ethereum to sell off due to the landing of the Dencun upgrade. , dragging down Bitcoin.

Altcoins and Memes may have reached short-term tops

In addition to fear of dragging down Bitcoin, altcoins closely related to Ethereum may also have reached short-term peaks, especially like Shiba (SHIB) The memecoin has triggered an explosive growth in transactions in the past 2-3 weeks. However, the decline in South Korean memecoin trading volume hinted that the memecoin mania may have reached its peak last week and heralded an upcoming market correction.

In addition, recent inflation data and central bank officials' caution about cutting interest rates have further dampened market sentiment.

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