Recent data from CoinShares reveals substantial outflows in Bitcoin investment products, amounting to $630 million in the past week. Over a span of 14 days, the total outflows have reached approximately $1.1 billion. The outflows are believed to be influenced by the latest FED interest rate decision and other market-related uncertainties.
Impact of FED Decision?
CoinShares’ “Weekly Digital Asset Fund Flows” report shows that all cryptocurrency investment products faced outflows of $584 million for the week ending June 21. This is primarily attributed to the recent FED interest rate decision, which has sparked global financial uncertainties, especially regarding potential interest rate cuts.
James Butterfill, CoinShares’ Head of Research, mentioned that investor pessimism about the FED’s rate adjustment is a significant factor. Additionally, the German government’s Bitcoin sales and statements from a Mt. Gox official about Bitcoin repayments have contributed to the outflows and declining prices.
What About Institutional Investors?
Farside Investors data reveals institutional companies witnessed $544.1 million in outflows from spot Bitcoin ETFs between June 17 and June 21. Fidelity’s FBTC saw the largest withdrawals, exceeding $271 million over the week.
Bitcoin’s price continues to plummet, having fallen 6.5% last week. Recently, BTC’s price dropped below $60,000 after opening at $63,170 on June 24. Crypto analyst Jelle indicated that Bitcoin’s daily RSI value has reached its lowest in nearly a year. Similarly, Trader Dom’s Crypto identified critical support levels for Bitcoin’s future movement.
Key Market Insights
– Institutional outflows from Bitcoin ETFs during June 17-21 reached $544.1 million.
– Fidelity’s FBTC saw withdrawals surpass $271 million.
– Bitcoin’s daily RSI value is at its lowest in a year.
– The 200-day SMA could drop to $57,200 if Bitcoin fails to hold above $60,000.
Data from Coinglass highlights significant liquidations, with $13.28 million in liquidity at the $60,450 level. Over $155.22 million in BTC long positions were liquidated in the past 24 hours, indicating substantial market impact.
In conclusion, the Bitcoin market is experiencing significant outflows and price declines, driven by various economic and institutional factors. Investors should pay close attention to ongoing market developments and strategic support levels to navigate these fluctuations effectively.