n the early hours of the Asian trading day on June 25, 2024, Bitcoin saw selling pressure that brought its price down briefly below the $60,000 mark, touching as low as $59,200. However, it rebounded soon after and has since held above $60,000, hovering around $60,736 at the time of writing. This dip represented around a 3.4% decrease from the previous 24 hours.
Analysts cited continued outflows from Bitcoin ETFs, upcoming bankruptcy repayments from the now-defunct Mt. Gox exchange, and miner selling as reasons for the downward pressure. However, the fact that BTC rebounded and has retained its level above $60K shows the digital asset was able to withstand this bout of volatility and short-term dips relatively well.
$1.3 Billion Shed from ETFs
Market data from the same time period showed heavy outflows from Bitcoin ETFs, totaling $1.3 billion over the preceding two weeks alone. On June 24 alone, outflows amounted to $174 million from ETFs in the United States stock market.
Notably, Grayscale's Bitcoin Trust, the largest such vehicle, saw outflows of $517 million in the last two weeks. However, BlackRock's recently-launched Bitcoin ETF bucked the trend and took in $43 million in inflows. This demonstrated continuing investor demand, even as other funds shed holdings.
The declines followed a broader crypto market slump, with the total market cap shedding over 10% of value in that time frame. Analysts cited the anticipated selling pressure from the July repayment of Mt. Gox creditors, totaling around $9 billion, as influencing these bearish trends.
Long Term Optimism
While further near-term volatility is expected in the weeks ahead, various analysts maintain optimism about Bitcoin's longer-term trajectory. Key technical levels are being watched around the $63-64K and $3,400 price points for Bitcoin and Ethereum respectively.
Many analysts believe the market has now largely priced in events like the Mt. Gox selling. And the launch of the Ether ETF later in 2024 could have the result of drawing new institutional investment back into the crypto space. By late 2024 and 2025, crypto markets may benefit from changing macro policies as well.
