- Bitcoin is seemingly range bound between $65,500 and $64,000 until sentiment improves, according to an analyst.
- US spot Bitcoin ETFs have witnessed net outflows of almost $300 million in the past two days, indicating institutional investors are selling their Bitcoin ETF shares.
- Former President Donald Trump stated his intent to make the US a Bitcoin mining powerhouse after meeting with Bitcoin miners, which could benefit miners massively in the coming months.
The Bitcoin price has been stuck in a range between $65,500 and $64,000 as investors await a catalyst to spur a decisive move. Recent outflows from Bitcoin ETFs have dampened sentiment.
Bitcoin ETF Outflows Weighing on Price
US spot Bitcoin ETFs have witnessed net outflows of almost $300 million in the past two days. Since the beginning of last week (June 10), Bitcoin funds in the states have seen net outflows of $879 million.
The relentless net outflows have damped investors’ confidence as Bitcoin has dropped by 6% in the past 7 days according to CoinGecko.
Yesterday, Fidelity’s FBTC fund saw the highest outflow of $175 million while Grayscale Investments’ GBTC fund witnessed an outflow of $65 million.
Last week, institutional investors took out $621 million from Bitcoin ETFs after the Federal Reserve’s stance turned out to be more hawkish than what market participants had anticipated.
Meanwhile, Bitcoin derivatives traders have lost $32 million to liquidations in the past 24 hours, with long liquidations accounting for $20 million according to derivatives analytics platform Coinglass.
Trend Reversal Possible if Inflows Exceed Outflows
A BRN trading desk note shared with Decrypt indicated that Bitcoin could potentially witness a trend reversal if ETF inflows exceeded outflows.
Investors still need to err on the side of caution, Fournier said, adding that if Bitcoin drops below the $64,000 mark, it could potentially trigger an early bear market.
Overnight Bitcoin’s price dropped to the short-term holder realized price (STHRP) of $64,000, a significant support level, he wrote. It rebounded to $65,500 but a sustained dip below STHRP could trigger a larger correction and potentially mark the beginning of an early bear market. While we believe Bitcoin is still consolidating towards higher levels, the need for a catalyst is becoming increasingly urgent as the extended selling pressure persists.
Conclusion
Bitcoin’s price action will likely remain subdued until a clear catalyst emerges or ETF outflows slow. Investors should watch for a break below $64,000 as a potential sign of further downside. Absent a positive development, boredom may persist for Bitcoin in the near-term.
