Bitcoin (BTC) price has fallen more than 5.5% over the past seven days as selling pressure has grown, hitting a six-week low of $58,400 on June 25. During this selling period, BTC fell below shorts. -There is a risk of a larger correction due to the period cost basis, according to market intelligence firm Glassnode.
“Since mid-June, spot prices have fallen below the cost basis for both $1 million to $1 million holders ($68.5 thousand) and $1 million to $3 million holders ($66.4 thousand).” Written in the “Week On-chain” newsletter published by Glassnode. June 25th
“If this structure persists, investor confidence has historically deteriorated and there is a risk that the correction will deepen and take longer to recover.”
The Bitcoin Short-Term Holder (STH) Cost Basis or Realized Price is an indicator of the average acquisition price of BTC by investors who are considered short-term holders, typically defined as the movement of coins held for less than 1 year, or 155 days.
According to data from LookIntoBitcoin, BTC violated the $64,000 level on June 23, falling below the STH realized price at the time of $64,591.
Moreover, the recent decline was below the cost threshold for holders of $3 million to $6 million, to $57,300, so even though the price has fallen, it is still showing an upward trend.
The report also highlights that the cost basis for holders of $1 million to $1 million has fallen below $1 million to $3 million, meaning “reduced momentum on the demand side and net capital outflow from assets.”
“During previous bull markets, we have had up to five negative capital flow structures. We can also see this structure operating from May into early June.”
Spot Bitcoin ETF inflows increase
On June 25, 10 U.S.-based spot Bitcoin exchange-traded funds (ETFs) saw small inflows totaling $31 million, ending a seven-day outflow streak.
According to data from SoSo Value, Fidelity’s ETF FBTC led net inflows on June 25 with $49 million, followed by Bitwise Bitcoin ETF BITB with $15 million in net inflows, and VanEck Bitcoin Trust ETF HODL with $4 million in net inflows. took third place.
On the other hand, Grayscale ETF GBTC reported net outflows of $30.2 million during the day, and ARK 21Shares Bitcoin ETF reported net outflows of $6 million.
As of June 25, the 10 spot Bitcoin funds, which began trading on January 11, have recorded net inflows of $14.42 billion and have assets under management worth more than $53.56.
The massive outflows seen in spot Bitcoin ETFs over the past few weeks are the highest since April, with total net outflows exceeding $1.2 billion between April 24 and early May.
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.