Cryptocurrency Investment Products Experience $584M Outflow Amid Bitcoin’s Drop to $60K

Investor withdrawals from Bitcoin-related financial products reached $630 million over the past week, with a cumulative total of roughly $1.1 billion withdrawn in the last two weeks, as reported by CoinShares.

In their latest “Digital Asset Fund Flows Weekly” report, CoinShares disclosed that withdrawals from all cryptocurrency investment products amounted to $584 million in the week ending June 21.

A significant reason for the reduction in crypto investments is that institutional and long-term investors have been scaling back their investments in Bitcoin ETFs due to diminished expectations of interest rate reductions by the U.S. Federal Reserve in 2024.

James Butterfill, the Head of Research at CoinShares, commented, “This is likely a response to the lack of optimism among investors regarding the Federal Reserve’s interest rate reductions this year.”

The report also noted a decrease in the weekly trading volume, which fell to $13.6 billion, marking the lowest level since the introduction of U.S. spot Bitcoin ETFs in January. The total assets managed by crypto funds are now valued at $92.2 billion.

Factors such as the German government’s sale of BTC and market expectations surrounding Bitcoin repayments from the Mt. Gox trustee have significantly influenced the recent sell-offs and price drops.

There has also been a persistent withdrawal from spot Bitcoin ETFs in the past week.

According to Farside Investors, institutions have pulled approximately $544.1 million from spot Bitcoin ETFs in the period from June 17 to June 21 alone. Notably, the FBTC managed by Fidelity recorded a sharp increase in withdrawals, totaling $271 million for the week.

Bitcoin price drops to $60,000

Bitcoin’s price continued its downward trend, falling by 6.5% over the past week. According to data from TradingView, Bitcoin’s price dropped from a starting point of $63,170 on June 24 to a low of $60,544 during the day. This is the lowest level Bitcoin has traded at since May 15, which was more than six weeks ago.

The daily relative strength index (RSI) also fell, moving from 33 to 28 in the past 24 hours, which underscores the strength of the current downtrend.

“Bitcoin’s daily RSI hasn’t been this low in nearly a year,” independent trader Jelle noted in his June 24 commentary on X.

In a subsequent post, Jelle remarked that Bitcoin is “attempting a rebound on a shorter time frame as funding rates turn negative.”

Fellow trader, Dom’s Crypto, pointed out critical levels for Bitcoin in the future. He warned that if Bitcoin fails to rebound at $61,300 or maintain above $60,000, it could drop further to the 200-day SMA, which stands at $57,200.

He also noted potential price movements to $60,700, a retest at $59,000, followed by another push to $62,000, citing resistance at the ‘Ascending TL’.

Data from the monitoring resource CoinGlass indicated that $13.28 million in liquidity had amassed at $60,450, near the current swing low. Additional information showed that $155.22 million in Bitcoin long positions were liquidated over the past day.

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