Bitcoin was down because of souring investor sentiment, as reflected in the Spot ETF netflow figures since mid-May.
Bitcoin continued its southward race and fell below the $70k round number. Trading at $69.6k at press time, the crypto leader has shed 4.21% over the past 24 hours and 9.1% over the past week.
Investor confidence was falling. Apart from price action, daily spot ETF flows also reflected this. According to SoSoValue’s ETF dashboard, the 1st of June recorded a negative $483.76 million flow. The netflows have been negative for every Spot ETF trading day since the 15th of May.
Since that day,Heightened Bitcoin whale activity sets off alarmsIn a post on X, crypto intelligence platform Santiment posted that there was an increase in BTC transactions with a value of $100k or more. This was the highest since the 22nd of April. While the post noted that this kind of whale activity, historically, signaled strong accumulation, the current move’s context was likely different. Examining the Bitcoin net transfer volume to and from exchanges, AMBCrypto found that inflows outweighed outflows.
The 7-day moving average has been positive since the 18th of May. As more BTC enters exchanges, it becomes more likely that whales and other market participants are selling, not accumulating. Crypto analyst Axel Adler Jr. used the one-week realized price volatility, smoothed out over a 30-day window, to demonstrate volatility compression. The scores fell from 39 in early March to 17 now, close to the lowest recorded levels in the indicator’s history.
Comparing the yearly average difference between the daily growth rates in market cap and realized cap, the analyst found that BTC’s market value is not keeping up with the network’s realized value. The negative delta showed that the market was far from trading at a premium, something that happens during bull phases when investor confidence is high. A quietly coiling long-term volatility signaled cooling conditions, while the market premium continues to compress.
Source: BTC/USDT on TradingView Following the higher timeframe structure, it becomes clear why Bitcoin is likely to continue to go down. The rally from March to May was a relief move that almost challenged the 61.8% Fibonacci retracement level at $83.4k. The bulls put up a fight, but this battle has since turned into a meek surrender. At the time of writing, BTC was trading below $70k and was likely headed toward the 23.6% extension level at $51k.
Among other reasons, Bitcoin was down because of souring investor sentiment, as reflected in the spot ETF netflow figures since mid-May.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ProCap sells Bitcoin to buy back discounted shares as treasury firms rethink BTC strategyThe Bitcoin treasury company used proceeds from a 52 BTC sale to buy back stock trading far below the value of its underlying reserves.
Read more »
Bitcoin: Can $72M in whale buying push BTC back toward $75K?Bitcoin's on-chain metrics show persistent demand, aligning with whale accumulation despite weak price action.
Read more »
Bitcoin Faces Headwinds in June: ETF Outflows and Liquidity Drain Weigh on MarketBitcoin starts June with bearish pressures from historical seasonality, record ETF outflows, and contracting stablecoin supply, threatening to extend May's losses.
Read more »
Bitcoin Treasury Firm Strive Plans $4 Billion Capital Raise to Expand BTC HoldingsStrive, a Bitcoin treasury firm, announced a $4 billion capital‑raising initiative to accelerate its Bitcoin purchases. The firm expects to increase the size of both its $ASST and $SATA ATM programs by $2.1 billion each, reflecting rising liquidity and demand. With the $4.2 billion raised, Strive could acquire around 60,000 BTC at current prices of $70,000 per BTC, scaling its holdings from 16,500 BTC to over 50,000 BTC and potentially surpassing Metaplanet to rank among the top three Bitcoin treasury firms. Strive's stock ASST slipped following the news, while broader market sentiment towards BTC treasury firms turned negative after Strategy's $2.5 million BTC sale.
Read more »