Bitcoin Outflows Reach $630 Million as Institutions Reduce Exposure
Over the past week, outflows from Bitcoin (BTC) investment products have amounted to $630 million, with total outflows reaching approximately $1.1 billion in the last 14 days, according to a report by CoinShares. The report, titled “Digital Asset Fund Flows Weekly,” reveals that all cryptocurrency investment products saw total outflows of $584 million in the week ending June 21.
The decline in investment in crypto products is primarily attributed to institutions and long-term investors reducing their exposure to spot Bitcoin ETFs due to the reduced possibility of interest cuts by the United States Federal Reserve in 2024. James Butterfill, CoinShares’ Head of Research, noted in the report that capital flows for crypto investment products have decreased.
The report also highlights a reduction in weekly trading volumes, which have reached $13.6 billion. This represents the lowest volumes traded on exchange-traded products (ETPs) globally since the launch of U.S. spot Bitcoin ETFs in January. Currently, crypto funds manage $92.2 billion in assets.
The recent decrease in buying and price declines can be attributed to the German government’s selling of BTC and market anticipation of Bitcoin repayment from the Mt. Gox trustee. Additionally, there have been continued outflows from spot Bitcoin ETFs.
Data from Farside Investors shows that institutions withdrew nearly $544.1 million from spot Bitcoin ETFs between June 17 and June 21. Fidelity’s FBTC experienced a significant surge in outflows, reaching $271 million for the week.
Bitcoin’s price has also dropped to $60,000 after a 6.5% decline over the past week. This is the lowest level BTC has traded at in over six weeks, since May 15. The daily relative strength index (RSI) has dropped from 33 to 28 in the last 24 hours, indicating the intensity of the downtrend.
Independent trader Jelle noted that Bitcoin’s daily RSI has not been this low in nearly a year. He also mentioned that BTC is starting to push for a lower-time frame bounce, with funding in the negatives.
Meanwhile, trader Dom’s Crypto highlighted the key levels for Bitcoin moving forward. If it fails to bounce at $61,300 or hold above $60,000, it could drop to the 200-day SMA at $57,200, he cautioned.
Interestingly, data from CoinGlass showed that there is liquidity of up to $13.28 million building up at $60,450, close to the current swing low. Additionally, $155.22 million worth of BTC longs have been liquidated in the last 24 hours.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.