The once-sunny skies above the crypto market have turned stormy. Bitcoin (BTC) prices dipped below a crucial support level of $65,000 on Thursday, June 20th, marking the second time in just three days. This drop coincides with a concerning trend – the fifth consecutive day of net outflows from spot Bitcoin exchange-traded funds (ETFs) in the U.S.
Spot Bitcoin ETFs Feeling the Drain
Data from Farside Investors paints a worrying picture. A collective total of $139.9 million flowed out of these funds on Thursday, falling just short of the staggering $152 million outflow recorded the day before. This exodus highlights a potential shift in investor sentiment, with some pulling their capital away from Bitcoin.
Grayscale’s GBTC, a prominent name among Nasdaq-listed funds, led the outflow parade with a net loss of $53.1 million. Hot on its heels was Fidelity’s FBTC, which hemorrhaged a significant $51.1 million. This marks the fifth consecutive day of outflows for FBTC, with a cumulative loss exceeding $412.7 million over that period.
A Glimmer of Hope?
While the overall trend is undeniably bearish, a solitary bright spot emerged – BlackRock’s IBIT fund. This fund defied the outflow trend, attracting a net inflow of $1.5 million. However, this positive note was overshadowed by net outflows from other major players like Bitwise’s BITB, VanEck’s HODL, and Invesco’s BTCO.
Beyond Outflows: Other Pressures on Bitcoin
The negative sentiment surrounding Bitcoin isn’t solely driven by ETF outflows. Significant selling activity may also be contributing to the price decline. A recent report by Arkham Intelligence revealed that the German government moved a hefty $600 million worth of Bitcoin, with $195 million likely deposited on exchanges.
While the German government still holds a significant amount of BTC (over $3 billion), this large-scale movement could be interpreted as a bearish signal, adding selling pressure to the market.
Navigating the Bitcoin Storm
Bitcoin’s recent price dip and the ongoing exodus from spot ETFs raise concerns about the immediate future of the cryptocurrency. Whether this represents a temporary correction or a more sustained downward trend remains to be seen. Investors should closely monitor the market and conduct thorough research before making any investment decisions.
Also Read: Bitcoin Price Tumbles 100 Days After Halving: Will Weak Miners Delay The Bull Run?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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