Slight rise in Bitcoin and crypto Source: Adobe/Kadmy

The crypto market saw slightly higher prices on Monday, despite warnings from analysts and institutional investors that the market could fall further, as the contagion of recent insolvencies continues to spread. The price of Bitcoin and Ethereum As of Monday at 16:17 UTC, bitcoin (BTC) was trading at 19,819 USD, up 4% in the last 24 hours but down 7% in the last 7 days. Meanwhile, ethereum (ETH) stood at 1,115 USD, up almost 6% for the day and down 9% for the week. The rise in cryptocurrency prices has arrived, as cryptocurrency research and investment firm CoinShares has reported an increase in capital flows to Bitcoin's new short exchange-traded fund (ETF), known as BITI. In total, bitcoin short funds saw inflows of USD 51.4 million last week, indicating a growing downward trend towards the number one crypto asset among investors who prefer these more traditional investment vehicles. Short bitcoin inflows made up the vast majority of the week's total crypto fund inflows, with only $4.9 million entering ETH-based funds and $4.4 million entering crypto multi-asset funds.

Compared to the week before, last week's inflows mark an improvement over record outflows of $423 million, although most of last week's inflows went into the new bitcoin short ETF. MTD - from the beginning of the month; From the beginning of the year - from the beginning of the year; AUM - assets under management. Source: CoinShares "Any short-term hike will be limited" Commenting on the state of the crypto market on Sunday, Singapore-based cryptocurrency trading firm QCP Capital said that "its positive outlook is waning," adding that they are "convinced" that any short-term upside will be limited. According to the company, the main reason for this bearish outlook is us Federal Reserve (Fed) Governor John Williams' earlier comments on the need to "bring real rates above zero" and the fact that quantitative tightening (QT) began in the US on June 15 and is set to increase further in the future. In addition, the trading company also said that the credit crisis among companies in the crypto sector "is not over", warning that "there may still be some liquidations on the horizon". Noteworthy is that QCP Capital's comment on real rates could mean something different in reality. Dutch central bank president Klaas Knot during a discussion at the World Economic Forum in May this year: "Even if financing conditions and interest rates tighten, real interest rates will go from very negative, to nothing or almost nothing." Bitcoin "could very well be close to the minimum" Meanwhile, on-chain analyst firm Santiment said that today, the 4th of July holiday in the United States, has so far been marked by "a massive increase in bullish positions on exchanges." However, analysts warned that overly anxious bulls are often a contrary signal and said that leveraged bullish position liquidations could follow. Martin Hiesboeck, Head of Blockchain and Crypto Research at payment service provider Uphold, also said in an emailed comment on Monday that BTC "could very well be close to the minimum." "This week has fluctuated aimlessly and with a reduced volume around [19,000 USD], and while some indicators point to a level around [12,000 USD - 15,000 USD] as the approach of the end of the bearish phase, a rapid capitulation could be followed by a prolonged or spectacular rebound," Hiesboeck said. Extended bear market for crypto Commenting last week, Tom Loverro, general partner at venture capital firm IVP and former Board Observer of Coinbase, said he expects an extended bear market for cryptocurrencies. He also said: "2023 will be mostly flat or down, until indifference takes hold, signaling a long-awaited spring thaw," adding that he expects macro conditions to improve in the second half of 2023. "The fund will not come during this current phase of fear and disgust, but later, after indifference, cryptocurrencies no longer make the news and tourists have left. This process will take many months," he said. Also offering a rather pessimistic outlook, Cathie Wood's investment firm, Ark Invest, said in a monthly bitcoin-focused report on Friday that contagion caused by the problems of companies like Celsius (CEL) and Three Arrows Capital sent bitcoin to "capitulation." Although the coin has already entered the capitulation phase, there may still be a further downturn, the company warned, citing high levels of unrealized losses and uncertain macro conditions as risks to the price. On the plus side, Ark's report states that bitcoin is now trading below various measures of its on-chain cost base for the first time in two years. "Trading below these levels is atypical and suggests oversold conditions. Only four times in the history of bitcoin has it traded below price levels compared to these means," the report said. Source: Ark Invest