Analysis: Bitcoin may still be dominated by volatile consolidation in the short term

On May 26, according to BIT analysis, a key to market analysis often lies in identifying the core factors driving asset price movements and observing when these factors begin to change. For Bitcoin, its sustained rise over the past period has largely depended on the ebb and flow between institutional demand and the market's available supply. Over the past year, spot Bitcoin ETFs and Strategy (formerly MicroStrategy) have been significant sources of such demand. When ETF inflows accelerated and Strategy continuously increased its Bitcoin holdings, Bitcoin's price typically continued to rise. Currently, the combined net purchases of ETFs and Strategy have fallen to just $870 million, mainly due to significant outflows from ETFs, shifting from net purchases to net sales. Until ETF inflows stabilize and rebound, Bitcoin may continue to trade in a range-bound manner in the short term.