Outflows from Bitcoin (BTC) investment products hit $630 million over the last week, with the total outflows in 14 days reaching approximately $1.1 billion, according to CoinShares.
The CoinShares’ “Digital Asset Fund Flows Weekly” report reveals that the total outflows from all cryptocurrency investment products reached $584 million for the week ending June 21.
This reduction in investment in crypto products is primarily attributed to institutions and long-term investors reducing their exposure to spot Bitcoin ETFs amid the reduced possibility of interest cuts by the United States Federal Reserve in 2024.
CoinShares Head of Research James Butterfill wrote,
“We believe this is in reaction to the pessimism amongst investors for the prospect of interest rate cuts by the Fed this year.”
The report also highlighted a reduction in weekly trading volumes, reaching $13.6 billion, the “lowest volumes traded on ETPs globally since the launch of U.S.spot Bitcoin ETFs in January.” Crypto funds now manage $92.2 billion in assets.
The recent drop in buying and price decreases is mainly driven by the German government’s selling of BTC and market anticipation of Bitcoin repayment from the Mt. Gox trustee.
Accompanying Bitcoin’s price correction over the last week are the continued outflows from spot Bitcoin ETFs.
Data from Farside Investors shows that institutions withdrew nearly $544.1 million from spot Bitcoin ETFs between June 17 and June 21. Fidelity’s FBTC saw outflows surge dramatically to $271 million for the week.
Bitcoin price drops to $60,000
Bitcoin continued trending lower after dropping 6.5% over the last week. Data from Cointelegraph Markets Pro and TradingView confirm that the BTC price dropped from an opening of $63,170 on June 24 to an intra-day low of $60,544. The last time BTC traded around this level was over six weeks ago, on May 15.
BTC/USD daily chart. Source: TradingView
The daily relative strength index has dropped from 33 to 28 over the last 24 hours, reinforcing the intensity of the downtrend.
“Bitcoin’s daily RSI has not been this low in nearly a year,” independent trader Jelle wrote in part of his June 24 post on X.
Related: Bitcoin falls below $63K after BTC whale transactions drop 42%
In another post, Jelle added that BTC is “starting to push for a lower-time frame bounce, with funding in the negatives.”
Meanwhile, fellow trader Dom’s Crypto set out the key levels for Bitcoin moving forward.
“If it fails to bounce at $61,300 or to hold above $60,000,” it could drop to the “200-day SMA at $57,200,” he cautioned on the day.
“After that, move up to $60,700, retest at $59,000, again to $62,000 (Resistance at’ Ascending TL’).”
Interestingly, data from the monitoring resource CoinGlass showed liquidity of up to $13.28 million, building up at $60,450, close to today’s swing low. Additional data confirmed that $155.22 million of BTC longs have been liquidated over the last 24 hours.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
