- Fears of a postponed interest rate cut, a rising DXY, and a decline in the price of Bitcoin are to blame for the $584 million withdrawal from cryptocurrency investment products.
According to CoinShares, withdrawals from Bitcoin BTC tickers down $60,949 investment products have reached $630 million in the past week, bringing the total outflows in the last 14 days to almost $1.1 billion.
For the week ending June 21, the total withdrawals from all cryptocurrency investment products came to $584 million, according to the CoinShares Digital Asset Fund Flows Weekly report.
Because there is less chance that the US Federal Reserve would lower interest rates in 2024, institutions and long-term investors have reduced their exposure to spot Bitcoin ETFs, which is the main cause of this decline in investment in cryptocurrency products.
The research also showed that weekly trading volumes had decreased to $13.6 billion, the lowest levels seen on ETPs worldwide since the introduction of U.S.-spot Bitcoin ETFs in January. Currently, $92.2 billion in assets are managed by crypto funds.
The German government’s sale of bitcoin and the market’s expectation of a payout from the Mt. Gox trustee for bitcoin are the primary causes of the current decline in purchases and price drops.
The ongoing withdrawals from spot Bitcoin ETFs have coincided with the recent decline in the price of bitcoin.
Institutions withdrew close to $544.1 million from spot Bitcoin ETFs between June 17 and June 21, according to data from Farside Investors. Withdrawals from Fidelity’s FBTC sharply increased to $271 million over the course of the week.
The price of bitcoin decreases to $60,000
Following a 6.5% decline during the previous week, the price of bitcoin kept declining. Data from TradingView and Cointelegraph Markets Pro show that the price of bitcoin fell from an intraday high of $60,544 on June 24 to an opening of $63,170. BTC last traded at this level on May 15, more than six weeks ago.
Over the past 24 hours, the daily relative strength index has decreased from 33 to 28, which has intensified the downturn.
Independent trader Jelle stated in part of his June 24 article on X that the daily RSI for Bitcoin has not been this low in almost a year.
It’s interesting to note that data from the monitoring tool CoinGlass revealed liquidity of up to $13.28 million, peaking at $60,450, not far from the swing bottom of today. Over the past day, $155.22 million worth of Bitcoin longs have been liquidated, according to further data.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
