Bitcoin Investment Products Suffer $1.1 Billion Outflow in Two Weeks Amid Price Declines
Summary:
Bitcoin investment products saw a withdrawal of $630 million last week, reaching $1.1 billion over the past two weeks, according to CoinShares. The decline is attributed to institutions and long-term investors reducing their exposure to Bitcoin ETFs amid uncertainties of interest rate cuts. Concurrently, trading volumes fell to $13.6 billion, marking the lowest since the launch of U.S. spot Bitcoin ETFs in January. Amid this, Bitcoin's price dropped to $60,000, a 6.5% decrease in the last week.
Bitcoin investment vehicles have faced withdrawal of nearly $630 million over the past week, with the outflows totaling almost $1.1 billion across a two-week period, as per data from CoinShares. CoinShares' Weekly Report on Digital Asset Fund Flows noted that all cryptocurrency investment products experienced outflows of roughly $584 million during the week ending June 21. This declining trend in crypto investments is mostly due to long-term investors and institutions lowering their stakes in Bitcoin ETFs, given the uncertainty surrounding potential interest rate cuts by the U.S. Federal Reserve in 2024. CoinShares' research chief James Butterfill commented that this trend can be traced back to negative sentiment regarding possible rate cuts by the Fed this year.
Crypto product investment flows. (Courtesy: CoinShares)
The weekly report also highlighted a downtick in trading volumes, with $13.6 billion noted - the lowest since the introduction of U.S. spot Bitcoin ETFs in January. Currently, crypto funds oversee assets worth $92.2 billion. This fall in investments, coupled with decreasing prices, is driven predominantly by the selling of BTC by the German government and market expectations of Bitcoin repayments from Mt. Gox trustee. The correction in Bitcoin's price during the last week coincides with ongoing outflows from Bitcoin ETFs. Information gathered by Farside Investors suggest, approximately $544.1 million was withdrawn from Bitcoin ETFs between June 17 and June 21. An alarming eruption of outflows worth $271 million was noted for Fidelity's FBTC in the week.
Bitcoin ETF flows overview. (Source: Farside Investors)
Bitcoin Slumps to $60,000
The downward spiral continues for Bitcoin, shedding 6.5% over the last week. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s price fell from a $63,170 opening on June 24 to an intra-day low of $60,544. Bitcoin last traded near this price range around six weeks ago, on May 15.
BTC/USD daily statistics. (Source: TradingView)
Further downturn is indicated by the daily relative strength index slipping from 33 to 28 in the past 24 hours. Intensification of the downtrend is evident as independent trader, Jelle, mentioned, "It's been almost a year since Bitcoin's daily RSI was this low," in his June 24 X post.
On a different note, Jelle signposted potential for a shorter-term bounce as Bitcoin edges lower, given the negative funding. On key observations for Bitcoin's subsequent movements, fellow trader Dom’s Crypto signposted if it fails to bounce at $61,300 or hold above $60,000, it could potentially decline to the level of the “200-day SMA at $57,200.”
BTC/USD daily stats. (Source: Dom’s Crypto)
Interesting data from CoinGlass showed amassed liquidity worth around $13.28 million, lined up at $60,450, fairly close to the day’s swing low. Supplemental data confirmed that Bitcoin long positions worth $155.22 million were wiped out in the past 24 hours.
BTC Liquidation Chart. (Source: CoinGlass)
This article is intended for informational purposes and does not serve as investment advice or suggestions. Every investment and trading action carries risk. Thus, readers are advised to undertake thorough research before making any financial decisions.
Published At
6/24/2024 8:00:00 PM
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