A First for Bitcoin Since 2023: Institutions Offload 127,000 BTC
Net flows from Bitcoin investment vehicles over the past year have turned negative for the first time since November 2023, revealing that selling pressure on the institutional side is deepening.
One of the most important barometers of institutional interest in the cryptocurrency market, Bitcoin investment vehicles, have recently been experiencing significant hemorrhaging. According to data shared by research firm K33, annual cumulative flows into exchange-traded products (ETPs) have fallen into negative territory after a long hiatus. As of June 18, the annual net flow dropped to the -1,176 BTC level, showing that the trend of investors exiting funds has outpaced inflows.
K33 Research Manager Vetle Lunde stated that global Bitcoin ETP holdings have decreased by 8% from their peak. This decline was recorded as the largest drawdown ever seen in both percentage and volume. Currently, global ETPs hold a total of 1,466,029 BTC. This figure indicates holdings that are approximately 127,774 BTC less than the peak level.
Critical Threshold in Bitcoin Price and ETP Outflows
These sharp outflows from the market are also putting palpable pressure on the Bitcoin price. Bitcoin, which lost 6% of its value last week, dipped below the $62,000 level and approached its 200-week moving average. Downward-trending charts and the general market outlook suggest that investors may be in a stage of “capitulation.” Daily spot trading volume fell to $1.99 billion, the third-lowest level of the year, confirming the market’s stagnation.
On the other hand, the fact that average daily outflows have slowed to 625 BTC over the last two weeks indicates that selling pressure has lost some momentum. Experts emphasize that buyers and sellers are in an uncertain balance, and this situation could create sharp volatility, or price fluctuations, in the coming period. On the institutional side, it appears that giants like MicroStrategy are not yet at a point where they would be forced to sell, but the general fragility in the market remains.