Key facts
- Bitcoin price fell below the 'Fire Sale!' band on the Bitcoin Rainbow Chart.
- The Fear and Greed Index registered a reading of 12 out of 100, indicating 'Extreme Fear'.
- Approximately $4 billion in Bitcoin ETF outflows have occurred since May 14.
- Professional investors reduced Bitcoin ETF exposure by 17% in Q1.
- Short-term holders transferred 53,800 BTC to exchanges at a loss.
Bitcoin's price has fallen below the 'Fire Sale!' band on the Bitcoin Rainbow Chart, a valuation level not seen since the FTX exchange collapse in November 2022. The Fear and Greed Index registered a reading of 12 out of 100, signaling 'Extreme Fear'. Bitcoin opened near $63,500 on Thursday, having dropped below $62,000 the previous night. Short-term Bitcoin holders transferred 53,800 BTC to exchanges at a loss, marking the strongest capitulation signal of the year, according to CryptoQuant. This selling pressure coincided with approximately $4 billion in Bitcoin ETF outflows since May 14. Concurrently, capital markets have directed about $400 billion toward AI buildout over the past six months, a factor Michael Saylor suggested is drawing institutional capital away from crypto. MicroStrategy sold 32 BTC to fund preferred-share dividends. Professional investors reduced their Bitcoin ETF exposure to 261,000 BTC from 313,000 BTC in the first quarter, a 17% decline, with the combined value of those holdings falling 35% to $17.8 billion. The share of total US Bitcoin ETF assets held by 13F filers declined to 20.8% from 24.7%.