Bitcoin’s price has been under significant pressure from sellers, leading to a drop of more than 5.5% in the past week, hitting a six-week low of $58,400 on June 25. According to market analysis firm Glassnode, this recent sell-off has pushed Bitcoin below its short-term cost basis, potentially setting the stage for a deeper correction.
Glassnode’s “Week On-chain” newsletter, published on June 25, highlighted that since mid-June, the spot price of Bitcoin has fallen below the cost basis of both short-term holders who have held the cryptocurrency for 1 week to 1 month ($68.5k) and those who have held it for 1 month to 3 months ($66.4k).
Bitcoin’s short-term holder (STH) cost basis, also known as the realized price, represents the average purchase price of BTC for investors classified as short-term holders, typically those who have held the coins for less than 155 days. Data from LookIntoBitcoin showed that when Bitcoin dropped below the $64,000 level on June 23, it fell below the STH realized price at that time, which was $64,591.
Furthermore, the recent decline in Bitcoin’s price was close to pushing it below the cost basis of holders who have held the cryptocurrency for 3 to 6 months at $57,300, a metric that continues to rise despite the price drop. The report also noted that the cost basis of holders who have held Bitcoin for 1 week to 1 month fell below that of holders who have held it for 1 month to 3 months, indicating a decrease in demand momentum and a net outflow of capital from the asset.
In a separate development, on June 25, the 10 United States-based spot Bitcoin exchange-traded funds (ETFs) experienced minor inflows totaling $31 million, breaking a streak of seven consecutive days of outflows. Data from SoSo Value showed that Fidelity’s ETF FBTC led in net inflows with $49 million, followed by the Bitwise Bitcoin ETF BITB with $15 million, and the VanEck Bitcoin Trust ETF HODL with $4 million in net inflows.
Conversely, the Grayscale ETF GBTC saw a single-day outflow of $30.2 million, while the ARK 21Shares Bitcoin ETF reported $6 million in net outflows. Since their launch on January 11, the 10 spot Bitcoin funds have seen net inflows of $14.42 billion, with assets under management exceeding $53.56 billion as of June 25.
The significant outflows observed in spot Bitcoin ETFs in recent weeks are the highest since April, when total net outflows surpassed $1.2 billion between April 24 and the beginning of May. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.