Bitcoin price has been experiencing massive declines throughout this week. According to data from CoinMarketCap, BTC has fallen more than 6% over the past seven days and nearly 10% in just two weeks. Massive outflow of spot Bitcoin ETFs, ongoing US-Iran war, Increased selling pressure among whales and institutional investors.
Bitcoin price crashes as ETF outflows and selling pressure increase
The market is experiencing significant volatility as new factors are putting enormous pressure on the price of Bitcoin and the broader cryptocurrency market. According to cryptocurrency analyst Nic on crash It is below the $75,000 support area and is currently hovering near the next important support level, which is around $73,000.
In cryptocurrency Soars to $83,000 I received it in early May, but it was flatly rejected. Since then, Bitcoin has shown a steady decline. However, the downward trend accelerated last week, with prices falling much faster and sharper than before.
Several factors are involved in this severe price decline, including: Reduced demand for spot Bitcoin ETFs. There is also on-chain data from SoSoValue as well as institutions showing very low interest in these investment products. show Bitcoin ETF recorded outflows for 8 consecutive days.
From May 15th, Bitcoin ETF recorded only outflowsThis is because institutions continue to leave the market to protect their assets from further losses. Tuesday May 27 saw the highest outflow of the month. About $733.43 million was withdrawn in just one day, with BlackRock’s IBIT leading the way with the highest outflow. Previously, BTC only recorded inflows for 6 days, which meant Now sellers dominate the market.
Swissblock, a private financial research firm, also highlighted Recent negativity and downside risks currently plaguing the markets. They noted: Bitcoin Risk Index There are now signs that selling pressure is overwhelming the market.
Due to this trend, the company said that BTC automatically transitioned back into the distribution area after the experience. Strong accumulation and multiple rallies In March and April. They say the lack of ETF support combined with the Risk Indef numbers suggest that BTC’s downside risks are accelerating at a worrying rate.
New US-Iran strike puts more pressure on fragile markets
In addition to rising selling pressure and ETF outflows, new US-Iran airstrikes It also had a negative impact on Bitcoin market sentiment. Nic noted that renewed fighting following the recently announced ceasefire has triggered massive liquidations across markets. Bitcoin price falls.
In addition, CNN’s real-time data reveal Iran’s Islamic Revolutionary Guard Corps recently launched a new attack on a U.S. air force base. Meanwhile, U.S. airstrikes targeted Iranian drones and an important launch site near the Strait of Hormuz.
The war was resumed Uncertainty about the proposed peace agreement. The market is currently waiting for further positive changes as investors exit risky assets to avoid losses.
Featured image created with Dall.E, chart from Tradingview.com
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