Bitcoin Boredom Garners Steam Amid Wait for ETF Withdrawals to Calm

The Bitcoin boredom garners steam, with the BTC price appearing to range around $64,000. Analysts predict the trend will continue till the sentiment improves and ends the exchange-traded funds withdrawals. 

The US-approved spot Bitcoin exchange-traded funds (ETFs) suffered net outflows, nearly hitting $300M in the past two days. The funds continued to bleed even after Bitcoin reclaimed the $65,000 following the slip to $64,000 a day earlier.

Crypto Market on Verge of Plunging 

Analysts predict that the lead crypto by market value will remain around 64,000 to 65,000. The analysts suggest that short-term movement in Bitcoin price is unlikely and that any bursts would remain muted, attributing it to the absence of critical catalysts. 

The analysts indicated that the crypto space is witnessing the worrying trend of leading institutional investors disposing of their Bitcoin ETF shares, which has persisted since last week. 

The past two days saw Bitcoin ETFs suffer a $298 million net outflow, as per SoSovalue data. The data analytics platform illustrates that since June 10, the Bitcoin funds have bled $879 million in net outflows. 

The sentiment surrounding Bitcoin ETFs is seemingly cooling as the crypto funds realize the most significant loss since March. It coincides with the Federal Reserve issuing a hawkish stance since the previous week, lowering institutional investors’ confidence in the market.

Crypto ETPs Suffer $600M Withdrawal

The total outflows registered across the crypto exchange-traded products (ETPs)  saw them suffer a $600M withdrawal. The amount became the worst outflow of the crypto ETPs since March. 

Investors appear to have waning confidence owing to the dot plot where Fed presidents and governors made contrasting forecasts portraying skepticism of dovish policies. 

Reviewing the day’s activity reveals Fidelity’s FBTC fund as the worst-hit casualty of a massive outflow of $175M. Grayscale Investments’ GBTC ranked second in bleeding $65M. 

The day’s outflow aligned with the previous week’s trend, where institutional investors had $621M withdrawn from the Bitcoin ETFs. The mass withdrawal arose from the Fed turning more hawkish at a period when the market participants expected an expansionary announcement. 

The ETF withdrawals occurred when the Bitcoin derivatives traders incurred a $32M loss to the liquidations witnessed in the past 24 hours. The long liquidations accounted for $20M per data from derivatives analytics Coinglass.

Net outflows are garnering steam across the crypto investors, with Bitcoin sliding by 6% in the seven-day run, as per CoinGecko. 

A BRN trading note revealed that Bitcoin could rebound if the ETF inflows turn the tables against outflows. 

The BRN trading note added that the pro-mining stance portrayed by US presidential candidate Donald Trump would benefit miners in the subsequent months. The pronouncement by the former president, who seeks to win in the November 4 election, emerges when the crypto space faces drastic changes with the miners phasing out old equipment for energy-efficient hardware. 

Bitcoin Mining Stocks Outperform

Trump’s announcement spurred mining stocks, outperforming Bitcoin the previous week. The politician vowed to transform the US into a mining powerhouse. Nasdaq-listed Bitfarms Ltd stock surged 34%, trailed by CleanSpark (CLSK) by 19%, as per Yahoo Finance data.

BRN digital asset analyst Valentin Fournier reported decreased miners’ reserve, HashPrice, and Hashrate. The analyst attributed the trend to the diminishing witnessed in the older devices that have become unprofitable. The miners are repurposing them for artificial intelligence (AI). 

The analysts noted that miners were depleting the Bitcoin holdings to furn operations and upgrading existing hardware. Fournier indicated that investors should exercise caution since a drop below $64,000 for Bitcoin could plunge the crypto into an early bear market. 

Fournier saw that Bitcoin price nosedived to test the short-term holder realized price (STHRP) at $64,000, which is considered a critical support level. The analyst noted that the price rebounded to test $65,500 and warned that a dip below the STHRP could spur a considerable correction and potential start to the early bear market. 

The analyst indicated that though the community believes Bitcoin will consolidate towards higher levels, a catalyst is increasingly urgent as selling pressure persists.