The storm continues to batter the bitcoin market, with massive outflows from spot ETFs shaking investor confidence. In one week, nearly $879 million left bitcoin funds, casting doubt on the future stability of the main crypto. According to experts, a key element could reverse this worrying trend.
Bitcoin collapse: the key figures to know
Over the past few days, bitcoin has seen a notable decline, hovering between $65,500 and $64,000. This instability is largely attributed to net outflows from Bitcoin ETFs American cash, which reached nearly $300 million in just two days. Since the start of last week, these net outflows have totaled $879 million. The largest individual outflow was recorded by Fidelity's FBTC fund with $175 million, followed by Grayscale Investments' GBTC fund with $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 approaching $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 maintains pressure on the price of bitcoin. BRN also highlights that Donald Trump's pro-mining position could benefit American miners, in particular 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. The decrease in miner reserves, combined with a decline in hashprice and hashrate, suggests a reduction 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 outflows from ETFs and prolonged selling pressure. Investors remain cautious, watching for a potential catalyst for a trend reversal. Future developments will depend on miners and government policies. For now, the market remains volatile, and investors should be cautious.
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