Bitfinex: Bitcoin (BTC) Faces Selling Pressure from Whales, Long-Term Holders, and Miners

Bitcoin
(BTC)
experienced
notable
selling
pressure
last
week
as
significant
net
outflows
from
Spot
Bitcoin
ETFs
were
recorded,
ending
a
20-day
streak
of
positive
inflows.
This
trend
is
reminiscent
of
the
outflows
observed
at
the
end
of
April,
according
to

Bitfinex
Alpha.

ETF
Flows
and
Market
Sentiment

Historical
data
indicates
that
ETF
investment
flows
are
a
useful
metric
for
gauging
investor
sentiment
on
BTC.
However,
these
flows
tend
to
be
reactionary
to
price
changes
rather
than
predictive
of
market
direction.
Notably,
whenever
BTC
surpasses
the
$70,000
mark,
net
ETF
inflows
have
approached
$1
billion
per
day.
With





BTC
prices
declining
last
week,
ETF
flows
were
negative
on
four
out
of
five
days.

Impact
of
US
Economic
Indicators

A
key
factor
influencing
BTC’s
valuation
last
week
was
the
release
of
US
consumer
inflation
data
and
the
Federal
Reserve’s
interest
rate
decisions.
The
Fed’s
indication
to
maintain
current
interest
rates
while
postponing
potential
rate
cuts
until
December
caused
market
jitters.
Despite
this,
other
economic
indicators
such
as
easing
CPI
and
PPI
figures,
along
with
a
loosening
labor
market,
suggest
room
for
optimism
that
rate
cuts
could
occur
as
early
as
September.

Role
of
Whales,
Long-Term
Holders,
and
Miners

On-chain
metrics
revealed
that
most
of
the
selling
pressure
came
from
long-term
holders,
whales,
and
miners
rather
than
ETF
investors.
The
Hodler
Net
Position
Change
metric,
which
tracks
whale
holdings,
has
shown
consistent
negative
values
for
the
past
nine
days.
Additionally,
the
Bitcoin:Exchange
Whale
ratio
has
increased
as
more
whales
deposit
balances
on
exchanges.
These
entities
hold
more
BTC
than
ETFs
and
have
significantly
impacted
the
market.

Miner
reserves
have
continued
to
decline,
even
post-halving,
indicating
that
miners
are
struggling
to
maintain
operational
efficiency.
They
are
selling
assets
to
remain
profitable
and
invest
in
upgraded
machinery.
With
miner
reserves
nearing
four-year
lows,
the
selling
pressure
from
this
group
might
be
approaching
a
critical
low.

Positive
Signals
for
Ether
ETFs

Meanwhile,
the
prospects
for
an
Ether
ETF
looked
promising
last
week.
SEC
Chairman
Gary
Gensler
hinted
at
a
potential
approval
in
the
coming
months.
Analysts
predict
that
the
first
spot
Ether
ETF
could
debut
as
soon
as
July
2nd,
following
feedback
that
the
SEC
requires
only
minimal
adjustments
from
applicants.

CBDC
Experiments
on
the
Rise

A
recent
BIS
survey
revealed
a
significant
increase
in
Central
Bank
Digital
Currency
(CBDC)
experiments
among
central
banks.
The
number
of
proof
of
concept
projects
rose
by
35
percent,
and
pilot
projects
nearly
tripled
from
2022
to
2023,
especially
in
advanced
economies.

These
developments
underscore
the
evolving
landscape
of
the
cryptocurrency
market.
As
BTC
navigates
these
pressures,
the
market
continues
to
adapt
to
new
economic
indicators
and
regulatory
signals.

Image
source:
Shutterstock