Bitcoin is trading above $56k after a volatile week that saw its price plummet to the $49k region on Monday. This drop followed a massive selloff in the stock market, which has raised concerns among investors about the stability of both traditional and digital assets.

Additionally, there has been a significant net outflow for US spot Bitcoin ETFs, indicating a lack of confidence among institutional investors. The recent market movements suggest a bearish outlook for Bitcoin in the short term, as regulatory uncertainties and macroeconomic factors continue to weigh heavily on investor sentiment.