David Vallieres on Bitcoin’s Future

David Vallieres, a respected crypto analyst, remains bullish on the leading cryptocurrency despite a dramatic drop on Tuesday.

Vallieres believes the S&P 500 index has yet to reach a new record high and predicts that Bitcoin will move in tandem with this flagship index due to their high correlation.

> “The S&P500 and #BTC are very tightly correlated now…”
> — David Vallieres (@vallieres_david) February 26, 2025

Bitcoin fell to $85,445 earlier, marking its lowest level since November. It is now down more than 10% over the past week and trading at approximately $86,148.

Disastrous Outflows

Reports indicate that the recent drop was accompanied by massive Bitcoin ETF outflows, which are poised to record their worst weekly flows ever. Some analysts, however, downplay the severity of these outflows.

Eric Balchunas from Bloomberg mentioned on social media, “On the bright side, tho, that is less than 2% of assets, a nickel dime considering the nastiness of the drawdown, over 98% of the money HODLing. Like I said, it’s gonna be two steps forward, one step back.”

Is the Bull Run Over?

According to the “Fear and Greed” sentiment indicator, the market is currently in a state of “extreme fear” with a score of 21 out of 100.

Weiss Crypto, a crypto-focused unit of Weiss Ratings, suggests that the recent drop to key support levels does not indicate the end of the bull run. However, if these levels break decisively, market participants “may have to wait a while longer” for the crypto rally to resume.