Bitcoin price has been in a massive downtrend all this week. Data from CoinMarketCap shows that Bitcoin has fallen more than 6% in the past seven days and nearly 10% in just two weeks. A combination of factors have contributed to this negative trend, including massive outflows into spot Bitcoin ETFs, the ongoing wars between the US and Iran, and Selling pressure is increasing among whales and institutional investors.
Bitcoin price collapses amid ETF inflows and rising selling pressure
The market is experiencing extreme volatility, as new factors put enormous pressure on the price of Bitcoin and the broader cryptocurrency market. According to cryptocurrency analyst Nic on X, Bitcoin has recently It crashed It is below the $75,000 support zone and is now located around the next critical support level, around $73,000.
It was cryptocurrency It rose to $83,000 Earlier this May, but it was strongly rejected. Since then, Bitcoin has been on a steady decline. However, last week has accelerated the downtrend, with the price falling much faster and sharper than before.
Several factors have been linked to this sharp decline in prices, including: Low demand for Bitcoin ETFs. Not only do institutions show very low interest in these investment products, but also in on-chain data from SoSoValue He appears Bitcoin ETFs recorded their eighth straight day of outflows.
Since May 15, Bitcoin ETFs recorded only outflowsAs institutions continue to exit the market to protect their assets from further losses. Tuesday, May 27 saw the highest flow rate of the month. About $733.43 million was withdrawn in just one day, with BlackRock’s IBIT leading the move with the highest outflows. Before that, Bitcoin recorded only six days of inflows, confirming its size Sellers now control the market.
Swissblock, a private financial research firm, also did Highlight The recent negativity and downside risks the market is currently experiencing. They pointed that out Bitcoin risk index It now indicates that selling pressure is dominating the market.
Because of this trend, the company said that Bitcoin automatically returned to the distribution area after its trial Strong accumulation and multiple pools In March and April. They say the lack of ETF support, combined with risk index readings, suggests that Bitcoin’s downside risks are accelerating at a worrying pace.
New US-Iranian strikes add more pressure to the fragile market
In addition to rising selling pressure and new ETF inflows US-Iranian air strikes It also negatively affected Bitcoin market sentiment. Nick noted that renewed fighting following the recently announced ceasefire led to mass liquidations across the market, leading to gunfire. Decline in the price of Bitcoin.
Moreover, live data from CNN reveals The Iranian Islamic Revolutionary Guard Corps recently launched a new attack on a US air base. Meanwhile, US strikes targeted Iranian drones and an important launch site near the Strait of Hormuz.
The war was resumed Uncertainty regarding the proposed peace agreement. Currently, the market is waiting for more positive updates, even as investors exit risky assets to avoid losses.
Featured image created with Dall.E, chart from Tradingview.com
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