The storm continues to rock the bitcoin market, with massive outflows from spot ETFs shaking investor confidence. In one week, nearly $879 million has left bitcoin funds, casting doubt on the future stability of the major crypto. According to experts, a key element could reverse this alarming trend.
Bitcoin crash: the key numbers you need to know
Over the past few days, Bitcoin has seen a significant decline, ranging between $65,500 and $64,000. This instability is largely due to net outflows from Bitcoin ETF American cash that reached nearly $300 million in just two days. As of the start of last week, those net outflows totaled $879 million. The largest individual outflow was recorded by Fidelity’s FBTC fund at $175 million, followed by Grayscale Investments’ GBTC fund at $65 million.
This selling trend among institutional investors intensified after the Federal Reserve took a more restrictive stance than expected. As a result, the price of Bitcoin has fallen 6% over the past seven days, shaking investor confidence. Derivatives traders also suffered losses, with liquidations reaching $32 million in the past 24 hours, including $20 million in long positions.
Bitcoin Trend Reversal: The Keys to a Possible Recovery
According to a note from trading desk BRN, a Bitcoin trend reversal could occur if ETF inflows outpace outflows. Currently, the trend is more towards selling, which keeps pressure on the price of Bitcoin. BRN also highlights that Donald Trump’s pro-miner stance could benefit US miners, particularly through the adoption of more energy-efficient equipment.
Bitcoin miners have also felt the pressure, selling off their holdings to fund their operations and upgrade their hardware. A decrease in mining reserves, combined with a drop in hash price and hashrate, implies a decrease in overall mining power. BRN analysts note that if Bitcoin falls below the $64,000 mark, it could trigger a premature bear market.
The Bitcoin market is at a critical point, with massive ETF outflows and continued pressure to sell. Investors remain cautious, watching for a potential catalyst to reverse the trend. Future development will depend on miners and government policies. For now, the market remains volatile and investors should be cautious.
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A graduate of Sciences Po Toulouse and holding a blockchain consultant certificate issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this permanently developing ecosystem. My goal is to empower everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I strive to provide objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and societal issues of this ongoing revolution.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making investment decisions.