Bitcoin investment products saw a significant outflow of $630 million in the past week, bringing the total outflows over a 14-day period to around $1.1 billion, as reported by CoinShares.
The “Digital Asset Fund Flows Weekly” report by CoinShares revealed that all cryptocurrency investment products experienced total outflows of $584 million for the week ending on June 21. This decline in investment in crypto products is mainly due to institutions and long-term investors reducing their exposure to spot Bitcoin ETFs amid the decreased likelihood of interest rate cuts by the United States Federal Reserve in 2024.
CoinShares’ Head of Research, James Butterfill, highlighted capital flows for crypto investment products in the report. Additionally, there was a decrease in weekly trading volumes, dropping to $13.6 billion, marking the lowest volumes traded on ETPs globally since the launch of U.S. spot Bitcoin ETFs in January. Currently, crypto funds manage assets worth $92.2 billion.
The recent decrease in buying activity and price drops are primarily influenced by the German government’s selling of BTC and market speculation regarding Bitcoin repayment from the Mt. Gox trustee. Alongside Bitcoin’s price correction in the past week, there have been continuous outflows from spot Bitcoin ETFs.
Data from Farside Investors revealed that institutions withdrew nearly $544.1 million from spot Bitcoin ETFs between June 17 and June 21. Fidelity’s FBTC experienced a significant surge in outflows, reaching $271 million for the week.
Bitcoin’s price dropped to $60,000 after a 6.5% decrease in the past week. According to data from Cointelegraph Markets Pro and TradingView, BTC’s price fell from an opening of $63,170 on June 24 to an intra-day low of $60,544. The last time BTC traded at this level was over six weeks ago on May 15.
The daily relative strength index dropped from 33 to 28 in the last 24 hours, indicating the intensity of the downtrend. Independent trader Jelle noted in a post on June 24 that Bitcoin’s daily RSI has not been this low in nearly a year.
In another post, Jelle mentioned that BTC is showing signs of a lower-time frame bounce, with funding in the negatives. Trader Dom’s Crypto outlined key levels for Bitcoin’s movement ahead, cautioning that if BTC fails to bounce at $61,300 or hold above $60,000, it could drop to the 200-day SMA at $57,200.
Interestingly, data from CoinGlass showed liquidity of up to $13.28 million accumulating at $60,450, near the current swing low. Additionally, $155.22 million worth of BTC longs were liquidated in the last 24 hours.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.