Key Points
- Bitcoin’s price decreases by 2.3% as US Spot BTC ETFs record five successive days of net cash outflows.
- Heightened selling pressure from Coinbase Inc. and bearish market sentiment contribute to the decline.
The overall cryptocurrency market declined by over 2% in the last 24 hours, mainly due to Bitcoin (BTC) which hovered around $2.46 trillion on Friday during the London session. The altcoin industry experienced increased bearish volatility, leading to over $129 million in forced liquidations.
The LayerZero (ZRO) airdrop caught the interest of many retail traders as the Binance crypto exchange initiated its airdrop period for BNB holders.
Increased Selling Pressure on Bitcoin
Bitcoin’s price has had difficulty surpassing $72k in recent months, despite the approval of various spot BTC ETFs in different jurisdictions, including the United States and Hong Kong. The absence of Bitcoin’s bullish momentum is largely due to increased selling pressure, specifically from Coinbase Global Inc. (NASDAQ: COIN).
Coinbase has been managing the increased Bitcoin selling pressure from spot BTC ETFs in recent weeks. On Thursday, June 20, US-based spot BTC ETFs recorded a total cash outflow of approximately $139 million.
Grayscale’s GBTC led in net cash outflow on Thursday with about $53 million, closely followed by Fidelity Investments’ FBTC with a total of $51 million. Bitwise’s BITB recorded one of its highest daily cash outflows of about $32 million.
Meanwhile, BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) recorded a total cash inflow of about $1 million on Thursday. As a result, US-based spot BTC ETFs have registered five consecutive days of net cash outflows.
Future of BTC Price Action
Bitcoin’s price has indicated midterm bearish sentiment after consistently closing below the daily 50 Simple Moving Average (SMA). Additionally, the weekly Relative Strength Index (RSI) has been falling towards the 50 level after slipping below the 70 level in April.
Axel Adler, an on-chain analyst and macro researcher at CryptoQuant, suggests that Bitcoin’s price has entered a macro waiting phase as low demand and market pessimism continue to increase.
From a technical standpoint, Bitcoin’s price could continue to decline in the coming weeks towards the support level of around $63,300k. If the $63k support level fails to hold, the flagship coin will drop further towards the range between $58k and $60k.
Despite the current situation, Bitcoin’s price is on a macro-rising trend following the fourth halving event, along with other positive fundamentals. As a result, some crypto analysts have set a long-term target of between $120 and $250k.
The Larger Context
The approval of spot Ethereum ETFs in the United States amid the changing crypto regulatory environment has favored the mass adoption of the altcoin industry. A Solana ETP could soon be launched in Canada, which could trigger the application of similar products for other altcoins.
With Bitcoin dominance approaching a major resistance zone, which could lead to a reversal, the altcoin industry is expected to experience increased bullish volatility in the future.