When will Bitcoin hit bottom? 10x calls for a further drop to 55k, as crypto ETP annual flows turn negative for the first time.

Bitcoin dips below $60k, with analysts pointing to a stronger U.S. dollar and the first time ETP capital flows turned negative. As a result, prices may probe further down to $55k, and market sentiment is becoming increasingly cautious.

10x Research: Bitcoin Still Could Dip to $55k

After Bitcoin ($BTC) briefly fell below $60k, discussions about when it might form a bottom quickly heated up. 10x Research founder Markus Thielen believes Bitcoin has not yet finished this round of correction, and prices may still have the chance to test around $55k before a more solid bottom can form.

Thielen noted that the market is currently facing pressures from a stronger U.S. dollar, the Federal Reserve’s policy remaining relatively hawkish, cooling demand for risk assets, and the fact that market leverage positions have not been fully cleared. If the broader economic environment continues to affect market liquidity, cryptocurrencies may continue to face downward correction pressure in the short term.

As the market reassesses risks, $55k has also become a key support level that many traders are watching next. If the price drops to that level, it would mean a further retreat of roughly 8% from $60k, and could also further test mid- to long-term investors’ confidence in holding.

Annual ETP Flows Turn Negative for the First Time

Fresh warning signs have also emerged on the capital front. K33 Research data shows that the rolling one-year capital flow for Bitcoin ETPs has turned negative—marking the first time since 2023 that outflows have exceeded inflows.

Chart source: K33 Research. Bitcoin ETP’s rolling one-year capital flow has turned negative

Over the past year, spot ETFs and various ETPs have consistently been important sources of capital driving Bitcoin higher. With this year’s capital flows shifting from positive to negative, it indicates that institutional investors’ allocation appetite is cooling, and also reflects the market’s more conservative stance toward risk assets.

Vetle Lunde, head of research at K33 Research, said Bitcoin ETP holdings have decreased by about 8% from their peak. Regardless of holding size or capital flow direction, this suggests the market is entering a period of adjustment.

Million-Dollar Predictions Start Coming Under Scrutiny

Bitcoin’s continued weakness has also prompted the market to revisit widely watched million-dollar price predictions.

Dave Portnoy, founder of Barstool Sports, recently stated publicly that after Bitcoin broke below $60k, he started to question whether the market’s prediction that Bitcoin will ultimately reach $1 million is overly optimistic. He believes there remain many uncertainties in the short-term market, and that investors should reassess current risks rather than fully rely on long-term price targets.

Chart source: X/@stoolpresidente Dave Portnoy doubts whether the market’s prediction of Bitcoin eventually reaching $1 million is overly optimistic

Portnoy’s comments reflect a shift in sentiment among some retail investors. When the market was hot, long-term targets such as $1 million were often a focal point of discussion. With the recent downtrend correction continuing, attention has gradually shifted toward capital flows, liquidity, and support levels, and trading strategies have become more conservative.

Market Focuses on Capital Flows and Bottom Signals

Beyond price action, the market is currently more concerned about whether capital will return. If ETFs and ETPs resume net inflows, spot buying in the U.S. market picks up, and leveraged positions are fully cleaned up, it could help the market gradually build new support.

On the other hand, the recent synchronized decline in Strategy’s stock price—despite the company holding a large amount of Bitcoin—also reflects the market beginning to reassess risks related to crypto-linked companies. Bitcoin’s price correction has already affected ETFs, ETPs, mining companies, and treasury-type firms, and market volatility has spread from cryptocurrencies themselves to related stocks.

At present, investors continue to watch whether Bitcoin can reclaim $60k, and whether there is clear follow-through buying around the $55k area. If capital flows improve, market confidence may gradually recover; if selling pressure continues to rise, the price could still test lower support ranges further.