According to CoinShares, outflows from Bitcoin (BTC) investment products hit $630 million over the past week, bringing the total outflow over the 14-day period to about $1.1 billion.
According to CoinShares’ “Weekly Digital Asset Fund Flows” report, total outflows across all cryptocurrency investment products for the week ending June 21 reached $584 million.
The decline in investment in cryptocurrency products is largely due to institutional and long-term investors reducing their exposure to spot Bitcoin ETFs amid the diminishing likelihood of an interest rate cut by the U.S. Federal Reserve in 2024.
CoinShares research director James Butterfill wrote:
“We believe this is a response to investor pessimism about the prospect of a Federal Reserve rate cut this year.”
The report also highlighted that weekly trading volume reached $13.6 billion, “the lowest volume for an ETP globally since the launch of the USspot Bitcoin ETF in January.” Cryptocurrency funds currently have $92.2 billion in assets under management.
The recent decline in purchases and price decline was mainly due to the German government’s BTC sell-off and Mt. This is due to market expectations regarding the redemption of Bitcoin by Gox trustees.
The Bitcoin price correction over the past week has resulted in continued outflows from spot Bitcoin ETFs.
Institutions withdrew nearly $544.1 million from spot Bitcoin ETFs between June 17 and June 21, according to data from Farside Investors. Fidelity’s FBTC saw a dramatic surge in outflows during the week, reaching $271 million.
Bitcoin price falls to $60,000
Bitcoin continued its downward trend after falling 6.5% last week. The BTC price fell from an opening price of $63,170 on June 24 to an intraday low of $60,544, according to data from Cointelegraph Markets Pro and TradingView. The last time BTC traded at this level was six weeks ago, on May 15th.
BTC/USD daily chart. Source: TradingView
The daily relative strength index fell from 33 to 28 over the past 24 hours, reinforcing the strength of the downtrend.
“Bitcoin’s daily RSI hasn’t been this low in almost a year,” independent trader Jelle wrote in part in a post on X on June 24.
Related: Bitcoin falls below $63,000 after BTC whale trading declines 42%
In another post, Jelle added that BTC is “starting to push for a lower frame bounce while in negative funds.”
Meanwhile, fellow trader Dom’s Crypto laid out a key level for Bitcoin to move forward.
He warned on this day, “If it fails to rebound from $61,300 or maintain above $60,000, the 200-day SMA could fall to $57,200.”
“It then goes up to $60,700, retests at $59,000 and again at $62,000 (resistance of ‘Ascending TL’).”
Interestingly, data from monitoring resource CoinGlass shows that liquidity of up to $13.28 million has increased to $60,450, close to the current low. Additional data shows that $155.22 million in BTC purchases were liquidated in the last 24 hours.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.