A South Korea-based analytics platform has revealed that the recent Bitcoin pullback can be attributed to miner capitulation, stagnant stablecoin issuance, and substantial outflows from major spot Bitcoin ETFs. The platform suggests that in order for the price to bounce back, selling pressure from miners and ETFs will need to be reduced.
Bitcoin (BTC) continues to experience a bearish trend as the selling pressure is slowly eroding Year-to-Date gains, resulting in a negative 2% return over the past 30 days. Currently, Bitcoin is trading at $65k, experiencing a 3.5% decline in the last seven days.
The South Korea-based on-chain analytics provider CryptoQuant has identified miner capitulation, stagnant stablecoin issuance, and substantial outflows from major spot Bitcoin ETFs as the main drivers behind the unexpected market pullback. According to CryptoQuant, miners’ revenues have dropped by 55%, leading them to sell off their holdings to cover operational costs. Research has shown that over 1,200 BTC was sold by miners, marking the highest amount recorded in two months.
Moreover, the lack of new stablecoin issuances, particularly USDT and USDC, has contributed to the bearish market, indicating a decline in new capital entering the market. Additionally, substantial outflows from spot Bitcoin ETFs from asset managers like Fidelity and Grayscale have also played a significant role in the market pullback.
Data from Farside Investors reveals that spot Bitcoin ETFs recorded a net outflow of $145.9 million on June 17, with most of the outflows coming from Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF. Contrary to these outflows, Bitwise Bitcoin ETF recorded an inflow of $2.9 million. In total, a net outflow of $580.6 million was recorded last week after four weeks of consecutive net inflows.
The combined effect of these factors has resulted in fear among short-term investors, leading them to sell off their holdings to avoid potential losses. However, the $62,400 price mark has been identified as a strong support level for short-term investors, suggesting that a reduction in selling pressure from miners and ETFs could trigger a bounce back in the price.
Keith Alan, co-founder of trading resource Material Indicators, commented on the situation, mentioning that multiple moving averages (MAs) have become a challenge after the spot price slipped through them. He also mentioned setting a trailing stop loss to protect profits in case of a Bitcoin dump, expressing optimism about the future.
