Key facts
- Bitcoin's price has declined toward the $60,000 level.
- US-listed spot Bitcoin ETFs saw net outflows of $213.85 million on Wednesday.
- Total outflows from spot Bitcoin ETFs since mid-May have reached $5.72 billion.
- Digital asset treasury firms have slowed their Bitcoin purchasing pace.
- Strategy sold 32 BTC in late May but subsequently bought approximately $100 million worth.
Bitcoin's price has fallen toward the $60,000 mark, driven by a simultaneous slowdown in demand from two key sources: spot Bitcoin ETFs and digital asset treasury firms. As of Thursday, BTC USD was trading around $63,000.
US-listed spot Bitcoin ETFs have continued to see significant outflows, recording $213.85 million in net redemptions on Wednesday alone. Since the second week of May, these outflows have accumulated to over $5.72 billion, reducing overall market support.
Simultaneously, digital asset treasury firms, which hold Bitcoin as part of their core strategy, have sharply reduced their buying activity. While still net buyers, their pace of accumulation has cooled considerably, with daily purchases slowing to a fraction of their previous levels seen in April and May when they regularly bought over $500 million daily.
Analysts note that this cautious approach from treasury firms removes another source of demand during a period of weak market sentiment. The slowdown in accumulation is directly linked to Bitcoin's recent price drop from around $74,000 to below $60,000.
Market attention has also focused on Strategy, the largest publicly listed Bitcoin holder. The company disclosed selling 32 BTC in late May but later re-entered the market during the recent price decline, purchasing approximately $100 million worth of Bitcoin.