Bitcoin hit $63,379, its lowest level in a month, as outflows from investment products and ETFs surged. Spot Bitcoin ETFs record more than $730 million in withdrawals in just one week.
Bitcoin price dropped nearly 3% in the past seven days on Binance. Other cryptocurrencies were also affected by the market-wide correction as BTC traded below $65,000.
Bitcoin sees an increase in ETF outflows
Data from Spotonchain shows that Bitcoin ETFs have recorded outflows of more than $730 million over the past week. The continued outflows indicate a decline in demand from institutional investors and a decline in Bitcoin’s importance to market participants.
The outflow coincided with Bitcoin’s recent price drop.
Bitcoin price hit a one-month low at $63,379 on Friday, June 21.
Bitcoin’s on-chain index shows that BTC remains resilient despite profit-taking
Santiment, a cryptocurrency intelligence tracker, shows that Bitcoin supply on exchanges has decreased by 27% over the past six months, from January 22 to June 22, 2024. Typically, volume Falling assets on exchanges is a bullish sign because it reduces selling pressure.
During this same period, Bitcoin investors have consistently taken profits, as shown by the Network Realized Profit/Loss (NPL) index. This index determines the net profit/loss of all tokens moved on a given day.
NPL shows multiple positive peaks, implying that investors have realized profits from their Bitcoin holdings. Despite profit-taking, Bitcoin supply remains 27% lower than in January and the asset remains above $63,000, a key support level.
The situation may change according to data from IntoTheBlock
According to data from IntoTheBlock, Bitcoin investors are likely to continue taking profits as nearly 82% of wallets holding BTC are currently profitable. Just under 15% of wallets holding Bitcoin are at unrealized losses.
The $63,426 level is a key support level for Bitcoin, according to the Global In/Out of the Money index. If Bitcoin falls below this level, it could extend its decline towards $46,348.
At the time of writing, Bitcoin is trading at $64,500, according to the bitcoin price list.
Vuong Tien
According to Fxstreet
