Why has the price of Bitcoin seen a drop of over 2.5% in the last 24 hours, bringing it down to $83,400? The answer lies in a combination of factors that have negatively affected investor sentiment, including sluggish institutional demand and low whale accumulation.
One major factor is the decreased demand for spot Bitcoin exchange-traded funds (ETFs). Data from Farside Investors shows that between March 28 and April 15, net outflows from spot Bitcoin ETFs totaled $964 million. This trend began at the end of March, coinciding with growing global trade tensions and fears of an economic downturn.
With less fresh capital flowing into the market, buying pressure decreases. As a result, prices fall when the supply of Bitcoin exceeds demand. Market intelligence firm CryptoQuant suggests that if this trend continues, it could further deepen the correction.
CEO Ki Young Ju of onchain data provider CryptoQuant warned, “A significant decrease in the total assets under management of spot Bitcoin ETF products can be seen as a substantial withdrawal of institutional investors.”
Furthermore, the absence of Bitcoin bulls has led to a bearish shift in market sentiment. CryptoQuant’s head of research, Julio Moreno, noted that the Bull Score Index, a measure of Bitcoin’s market health, has been below 50 for 58 of the last 60 days. This is the longest such streak since September 2022. A “Bull off” indicates a decrease in bullish momentum or sentiment, often signaling an impending bearish market.
Additionally, the rate of Bitcoin accumulation by large investors, or whales, has slowed down significantly. Over the past week, whale holdings have dropped by approximately 30,000 BTC. Their monthly accumulation rate fell from 2.7% at the end of March to just 0.5%, the slowest since February 20.
Finally, BTC’s recent dip is part of a larger downtrend that began when the price hit a major resistance zone. Bitcoin’s latest recovery attempt was halted by this resistance zone, particularly at the 50-day simple moving average (SMA) ($84,180) and the 200-day SMA ($87,650). The next support level to keep an eye on is the $80,000 mark.
This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should perform their own research when making a decision.
