Bitcoin
Bitcoin Boredom Will Continue Until ETF Withdrawals Improve
US spot Bitcoin ETFs have witnessed net outflows of nearly $300 million over the past two days.
O Bitcoin Price successfully recovered the $65,000 mark after falling to $64,000 yesterday. The top cryptocurrency is apparently between $65,500 and $64,000, according to analysts.
Bitcoin’s short-term price movement will likely remain muted in the absence of any major catalysts. And the worrying trend of institutional investors selling their Bitcoin ETF shares from last week still persists.
Over the past two days, US spot Bitcoin ETFs have seen net outflows of $298 million, according to data analytics platform SoSovalor. Since the beginning of last week, June 10, Bitcoin funds in the states have recorded net outflows of $879 million.
Yesterday, Fidelity’s FBTC fund saw the largest outflow of US$175 millionwhile Grayscale Investments’ GBTC fund witnessed an outflow of US$65 million.
Last week, institutional investors withdrew US$621 million Bitcoin ETFs after the Federal Reserve’s stance turned out to be more aggressive than market participants expected.
Meanwhile, Bitcoin derivatives traders lost $32 million in liquidations over the past 24 hours, with long liquidations accounting for US$20 millionaccording to derivatives analysis platform Coinglass.
Relentless net outflows diminished investor confidence as Bitcoin fell 6% in the last 7 days, according to CoinGecko.
A BRN trading desk note shared with Decrypt indicated that Bitcoin could potentially witness a trend reversal if ETF inflows exceed outflows.
The note continued stating that the Trump government pro-mining stance could greatly benefit miners in the coming months. The mining sector, as a whole, is undergoing drastic changes, as miners with old hardware are gradually being phased out, while new, energy-efficient miners are taking their place.
“Mining stocks outperformed Bitcoin last week, spurred by Trump’s announcement of his intention to make the US a mining power. Bitfarms led the charge with a 34% rise, followed by CleanSpark with a 19% gain Last week, we saw a decrease in miner reserves, along with declines in HashPrice (rewards for computing power) and Hashrate (computing power),” noted Valentin Fournier, analyst at digital asset research firm BRN. trend suggests that mining power is decreasing as we age. Mining devices become unprofitable and are repurposed for other uses, such as AI.”
Notably, miners have been running out its Bitcoin holdings to finance its operations or to upgrade its hardware.
Investors still need to be cautious, Fournier said, adding that if Bitcoin falls below the $64,000 mark, it could trigger an initial bear market.
“Overnight, the price of Bitcoin fell to the short-term holder realized price (STHRP) of $64,000, a significant support level,” he wrote. “It recovered to $65,500, but a sustained drop below STHRP could trigger a larger correction and potentially mark the start of an initial bear market. While we believe Bitcoin is still consolidating toward higher levels, the need for a catalyst is becoming increasingly urgent as prolonged selling pressure persists.”
Edited by Stacy Elliott.