David Vallieres, a respected crypto analyst, has stated that he remains bullish on the leading cryptocurrency despite the dramatic drop that took place on Tuesday. Vallieres is convinced that the S&P 500 index is yet to reach a new record high. He believes that Bitcoin is likely to move in tandem with the flagship index based on the high correlation between the two. The S&P500 and #BTC are very tightly correlated now... pic.twitter.com/n7JSrfEY6u — David Vallieres (@vallieres_david) February 26, 2025 The largest cryptocurrency collapsed to $85,445 earlier today, reaching the lowest level since November. It is now down more than 10% over the past week, currently trading at roughly $86,148. Disastrous outflows As reported by U.Today, the recent drop was accompanied by massive Bitcoin ETF outflows. These products are now on track to record their worst weekly flows ever. However, some analysts have downplayed the severity of these outflows. "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 fwd one step back," Bloomberg's Eric Balchunas said on social media. Is the bull run over? According to the "Fear and Greed" sentiment indicator, the market is currently in a state of "extreme fear" with 21 points out of 100. According to Weiss Crypto, the crypto-focused unit of Weiss Ratings, the recent drop to key support levels does not mean the bull run is over. However, if these levels break with confidence, market participants "may have to wait a while longer" for the crypto rally to resume.