Long-term investors, whales and miners put pressure on BTC

According to the Bitfinex Alpha Report, there were net outflows from spot Bitcoin ETFs and the 20-day inflow series ended. Selling from long-term investors, whales and miners was more decisive than selling from ETF investors. In addition, the decrease in miner reserves and Fed’sThe decision to maintain interest rates also had an impact on Bitcoin’s valuation.

According to Bitfinex’s 109th Alpha Report last week Bitcoin The 20-day inflow series ended with significant net outflows from spot Bitcoin ETFs. This chart reminded us of the outflows at the end of April.

Although ETF investment flows have historically proven to be an valuable metric to track for measuring investor sentiment around Bitcoin, they may not always be compatible with “smart money” flows. In addition, it should be kept in mind that they are a result that occurs as a reaction to price changes, rather than a situation that is useful for predicting the market side.

Every time BTC rises above $70,000, net ETF inflows approach $1 billion per day. While the price fell last week, ETF flows ended the day in the negatives on four out of five days.

Miners struggle to maintain operational efficiency

The most critical determinant in the valuation of BTC last week was the US consumer inflation data and the Federal Reserve are said to be interest rate decisions. On-chain metrics show that most of the selling came from long-term investors (LTH), whales and miners, not ETF investors. The Hodler Net Position Change metric, which measures whale assets, has consistently shown negative values ​​for the last nine days. Bitcoin Exchange Whale Ratio (EWR) continues to rise as more whales deposit their balances to exchanges. These clusters put more pressure on Bitcoin holders and the market compared to ETFs.

In addition, miner reserves continue to decrease even after the halving. This shows that miners have difficulty maintaining operational efficiency, so they continue to sell their assets in order to maintain their profitability and invest in higher model machines. However, it can be said that the selling pressure from this cluster is very low as miner reserves are approaching their lowest levels in the last four years.

Ether ETF is likely

Bitcoin became concerned last week after the Fed indicated that it could maintain current interest rates while also delaying potential interest rate cuts until December. However, despite this decline, it should be noted that other economic indicators announced last week create more room for optimistic approaches.

Last week, Securities and Exchange Commission (SEC) Chairman Gary Gensler mentioned a possible approval in the coming months. ether ETF possibility looks even closer. Analysts predict that the first spot Ether ETF could launch as soon as July 2, based on feedback from applicants that the SEC expects only minimal regulations.

Additionally, a BIS survey reveals a significant increase in CBDC trials among central banks. Proof-of-concept (PoC) projects increased by 35%, while pioneering trials almost tripled from 2022 to 2023, especially in developed economies. This shows how far crypto has come from its inception to today.

Hibya News Agency