Bitcoin Price Down 2.3% as US Spot BTC ETFs Registers 5 Consecutive Days of Net Cash Outflows

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As an experienced financial analyst, I believe that the current market trend for cryptocurrencies is bearish, with Bitcoin (BTC) leading the decline. The selling pressure on Bitcoin originating from Coinbase and other spot BTC ETFs has been significant in recent weeks, as evidenced by their net cash outflows. This has contributed to the lack of bullish momentum for Bitcoin despite the approval of several BTC ETFs.

As a crypto investor, I’ve observed a significant dip in the total cryptocurrency market value over the past 24 hours, with a decline of approximately 2%. This slide was primarily driven by Bitcoin (BTC), which now hovers around $2.46 trillion during the London session on Friday. The altcoin sector experienced more intense volatility, leading to forced liquidations worth over $129 million.

As a crypto investor, I’ve been keeping an eye on exciting opportunities in the market. One that recently piqued my interest was the LayerZero (ZRO) airdrop. This event gained significant attention among retail traders, including myself, when Binance announced the start of its airdrop distribution period for their BNB holders.

Bitcoin Suffers Heightened Selling Pressure

In recent months, the price of Bitcoin (BTC) has had a hard time surpassing the $72,000 mark, an achievement made more noteworthy by the approval of various spot Bitcoin ETFs in various locations, including the United States and Hong Kong. However, Bitcoin’s failure to gain significant bullish momentum can be linked back to increased selling pressure, primarily stemming from Coinbase Global Inc. (NASDAQ: COIN).

#Bitcoin selling pressure is originating from Coinbase.

— Ki Young Ju (@ki_young_ju) June 20, 2024

Significantly, Coinbase has been taking on the increased Bitcoin selling demand from Bitcoin spot ETFs in the recent past.

As a crypto investor, I observed that on Thursday, June 20, US-based Bitcoin spot ETFs collectively experienced an outflow of approximately $139 million in cash.

As an analyst, I’d rephrase it as follows: On Thursday, Grayscale’s GBTC led the way with approximately $53 million in net outflow, with Fidelity Investments’ FBTC following closely behind at around $51 million. Bitwise’s BITB also experienced a significant daily outflow, totalling roughly $32 million.

As a researcher observing the market, I’ve noticed that BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) experienced approximately $1 million in cash inflows last Thursday. Consequently, US-listed Bitcoin spot ETFs have recorded five straight days with net cash outflows.

🚨 $BTC #ETF Net Inflow June 20, 2024: -$140M!
• The net inflow has been negative for 5 consecutive days.
• Only #BlackRock (IBIT) experienced a small inflow of $1.5M yesterday.
• #Grayscale (GBTC) experienced the highest outflow of the day at $53M. This ETF has suffered a…
— Spot On Chain (@spotonchain) June 21, 2024

What Next for BTC Price Action

The price of Bitcoin has indicated a bearish outlook for the medium term as it persistently finishes beneath its daily moving average of 50 Simple Moving Averages (SMAs). Furthermore, the weekly Relative Strength Index (RSI) is trending downwards towards the 50 mark, having dropped below the 70 mark in April.

Based on the analysis of Axel Adler, a cryptocurrency researcher specializing in on-chain data and macro trends at CryptoQuant, the price of Bitcoin is currently in a prolonged period of quiet market conditions. This is due to decreasing demand and increasing market skepticism.

The rate at which the cost basis for Bitcoin changes on a weekly basis has fallen to zero, indicating that the market may be showing signs of pessimism or a decrease in both buying and selling pressures.

I would call this a “waiting phase.”#HODL

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) June 20, 2024

Technically speaking, the price of Bitcoin could potentially decrease in the upcoming weeks, approaching the support region of approximately $63,300. Should this support fail, Bitcoin may continue to fall within the range of around $58,000 to $60,000.

From a macro perspective as a researcher, I’ve observed Bitcoin’s price trend steadily rising since the latest halving event. Furthermore, various favorable fundamentals are also contributing to this upward trend. Consequently, some cryptocurrency analysts have projected long-term price targets ranging from $120,000 to $250,000 for Bitcoin.

Bigger Picture

As an analyst, I’ve observed that the recent approval of spot Ethereum Exchange-Traded Funds (ETFs) in the US has significantly boosted the acceptance and popularity of the altcoin industry. This trend could soon expand northward to Canada, where a Solana Exchange-Traded Product (ETP) is expected to be announced imminently. The emergence of such products for other altcoins may follow suit, further fueling their mass adoption.

As Bitcoin’s control nears a significant resistance point, potentially causing a reversal, the altcoin market is expected to see increased bullish price swings.

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2024-06-21 12:37