Wintermute reports weak capital inflows into Bitcoin, following a recent price drop and ongoing institutional selling.
Bitcoin's recent drop below $62,000 has highlighted a significant lack of capital inflows into digital assets, according to analysts from Wintermute. They attributed this downturn to institutional selling and significant outflows from exchange-traded funds (ETFs).
In the past week, Bitcoin experienced a notable decline of about 14%, hitting its lowest point since September 2024. Experts believe this decline does not mark a definitive market bottom, stressing the necessity of consistent buying pressure for any potential recovery.
Wintermute pointed out a recent sale of 32 BTC by Strategy, which while deemed minor in volume, carries symbolic weight as it represents the firm's first Bitcoin sale since 2022.
Market pressures are largely driven by diminishing demand, as evidenced by the U.S. spot Bitcoin ETFs enduring ten consecutive days of net outflows, culminating in approximate losses of $2.97 billion. The overall outflow for May reached $2.43 billion, marking a record low for 2026.
Wintermute's data indicates that retail investors are increasingly selling their Bitcoin to invest in stocks, while American institutions have adopted a bearish outlook. In contrast, capital flows in Asia and Europe appear more balanced.
Technical analysis shows weak support for Bitcoin in the $50,000–$59,000 range, which the cryptocurrency quickly surpassed during its earlier rise in 2024. While some long-term investors are beginning to accumulate at current prices, a significant return of capital inflows is essential for a confirmed market turnaround.
