Bitcoin has fallen to around $71,479, its lowest level since early April, driven by ETF outflows and a sale by treasury firm Strategy.
Bitcoin Dips to Lowest Level Since April
Bitcoin has fallen to its lowest price in nearly two months, trading at approximately $71,479. This decline coincides with significant outflows from exchange-traded funds (ETFs) and a notable sale by treasury firm Strategy.
Over the last 24 hours, the leading cryptocurrency dropped by 2.8% and has seen a decline of more than 7% over the past week, marking its lowest valuation since early April, according to CoinGecko data.
The recent downturn can be attributed to substantial ETF outflows, which have amounted to nearly $3 billion during a ten-day span. This trend has pushed year-to-date flows for Bitcoin ETFs into negative territory, prompting many investors to withdraw funds or shift their portfolios away from BTC exposure.
In addition to the ETF dynamics, Strategy, a significant player in the Bitcoin market with holdings exceeding $60 billion, sold 32 BTC worth approximately $2.5 million at an average price of $77,135. This transaction was anticipated as the firm’s chairman, Michael Saylor, had suggested that some Bitcoin might be sold to cover dividend payments for preferred stock.
The market reacted negatively to this news, with Strategy’s shares (MSTR) dropping over 6% since the market opened. Analysts have warned that even minor sales from Strategy’s portfolio could impact market sentiment and reduce confidence in Bitcoin.
Furthermore, recent market activity has led to around $155 million in liquidations of Bitcoin positions, predominantly affecting long positions, which bet on a price increase for BTC.
Currently, Bitcoin is down approximately 8% over the past month and remains 43% lower than its peak price of $126,080.
