Bitcoin Price Dips Amid Massive ETF Outflows and Decreasing Investor Interest
Summary:
Bitcoin's price fell below $66,000 for the second time in three days, following major outflows from Bitcoin exchange-traded funds last week. The withdrawal from Bitcoin ETFs reached $621 million, likely as a result of the Federal Open Market Committee's stricter monetary stance. Alongside this, investor interest in Bitcoin seems to be waning, adding to the pressure on its price. Meanwhile, several large-cap altcoins saw net inflows and outperformed Bitcoin over the past week. From a technical perspective, Bitcoin faces strong resistance from its former peak at $69,000.
Bitcoin's price experienced a drop below $66,000 for the second time in three consecutive days, coinciding with substantial liquidations from Bitcoin's exchange-traded funds (ETFs) over the previous week. Trading and market data reveal that Bitcoin's price slipped from its opening figure of $66, 629 to a low of $65, 050 on June 17. At the moment, Bitcoin's value sits at $65, 361, reflecting a 2% decrease in the past 24 hours.
This dip in Bitcoin's value trails a downward price trend that pushed the cryptocurrency to a low of $60,005 on June 14, in harmony with negative ETF movements. As the downtrend persists, key factors influencing Bitcoin's current price performance are considered.
Substantial drawdowns were noted in Bitcoin ETFs past week, totaling a withdrawal of $621 million. This period portrays a five-week inflow trend into cryptocurrency investment products, leading to a reduction of approximately $600 million, as stated in CoinShares’ June 17 report.
The report highlighted the Federal Open Market Committee’s (FOMC) tighter policies as potential drivers of the large-scale digital asset liquidations last week. This idea echoes the prevalent sentiment, particularly among Bitcoin investors, who pulled out $621 million, while short-Bitcoin recorded marginal inflows of $1.8 million. Farside Investors' data support these observations, revealing $580 million net outflows for Bitcoin ETFs in the week ending June 14.
Based on these heavy outflows, it is suggested that investor interest in Bitcoin is dwindling, resulting in a downward pressure on its price. Yet, the CoinShares report disclosed a varied mix of altcoins seeing inflows in the past week, receiving a collective net of $20.1 million. Examples include Ether, Lido DAO, and XRP, which received $13 million, $2 million, and $1 million, respectively.
Over this past week, numerous major altcoins have risen above Bitcoin, led by XRP and Toncoin, which saw weekly gains of 4% and 11%. Regardless, Bitcoin managed to outperform most altcoins over this time, including Solana and BNB Chain’s BNB.
However, altcoin's overall market still leans towards an upward trajectory, with the weekly relative strength index above the mid-line at 58, despite Bitcoin's dominance standing at 54%. Nevertheless, the Altcoin Season Index by Blockchain Center indicates an altcoin season is not on the horizon, falling at 20.
On the technical side, the Bitcoin price decline is a result of the cryptocurrency's unsuccessful attempt to push higher after hitting the key resistance point of its former peak at $69,000. This mark has held Bitcoin's price down for 11 weeks. In/Out of the Money Around Price model data shows that this barrier sits between $68,223 and $68,900, where approximately 700,130 Bitcoin was once bought by about 1.41 million addresses. Persistent attempts to drive the price above this region continually face relentless selling.
Published At
6/17/2024 8:19:40 PM
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