Bitcoin sheds ‘excessive bullish market euphoria’ as ETF outflows surpass $500M per day

Bitcoin (BTC) did not experience a significant margin call on futures contracts as its price dropped to a two-month low, according to analysis. In a thread on X on May 2, Checkmate, the lead on-chain analyst at blockchain data firm Glassnode, revealed a key change in the Bitcoin bull market. The analysis shows that derivatives were not the dominant factor in the sell-off, indicating that this pullback is healthy for the market. Funding rates in derivatives have cooled off gradually, suggesting that there was no massive futures margin call. This sets the current market apart from the previous bull market in 2021. The latest drop in Bitcoin price was also accompanied by significant outflows from US spot Bitcoin exchange-traded funds (ETFs). Even BlackRock’s iShares Bitcoin Trust saw substantial outflows. The sentiment in the crypto market has shifted, with the Crypto Fear & Greed Index returning to neutral territory at its lowest level since September last year. This article does not provide investment advice and readers should conduct their own research.