James Butterfill, Head of Research at 21Shares, characterized the prior two-month capitulation as the largest run of outflows the market has ever seen.
He noted that the recent short-lived recovery mirroring 2018 cycle lows occurred even as large-scale holders, or whales, eased their year-long $40 billion selling pressure.
Butterfill emphasized that broader macroeconomic headwinds, including tight monetary policy and geopolitical tensions, continue to limit a sustained market rally.
"We're not in a situation where we can say the Fed is on the cusp of cutting rates, and that would be very supportive to Bitcoin," he said.
The digital asset continues to show high sensitivity to global economic indicators and central bank policies.
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"Remains very, very sensitive to the inflation outlook, and by proxy, the Iran war and the outlook from the Fed," Butterfill added.
