- Ownership of Bitcoin ETFs fell at several financial institutions.
- Bitcoin’s price remained stagnant and volumes soared.
Bitcoins [BTC] The recent price correction caused sentiment in the markets to turn negative. But it wasn’t just crypto traders who were affected, Wall Street’s interest in the king’s coin also waned.
Bitcoin ETFs are seeing growth
Across nine exchange-traded Bitcoin fund ETFs, there was a collective decrease in holdings of 2,199 Bitcoin, which translated to approximately $153.4 million.
This decline can be attributed to two major players: ARK21Shares and Grayscale. ARK21Shares witnessed a drop of 840 BTC, which amounted to approximately -$58.6 million.
As of June 12, they held 48,199 BTC, worth approximately $3.36 billion. Grayscale also saw a drop in its holdings, down 580 BTC, about $40.5 million. As of June 12, Grayscale owned 283,966 BTC, worth $19.81 billion.
If major players lose confidence and sell their holdings, it could indicate a lack of confidence in BTC’s long-term potential, which could lead to a negative sentiment ripple effect across the market.
This could lead to a broader sell-off as less risk-tolerant investors panic and follow suit.
Source:
Data this week pointed to a two-month high in transfers from mining pools to exchanges, coinciding with BTC approaching its local peak of $70,000.
This suggested that miners were taking advantage of the price increase, possibly through over-the-counter (OTC) agencies.
This trend was likely caused by the recent Bitcoin halving, which reduced rewards for miners and caused these miners to sell some of their holdings to maintain profitability.
On June 10, 1,200 BTC were sold, representing the highest daily total in two months, underscoring a potential increase in selling pressure from miners.
In addition, miner revenues declined. As miners’ incomes continue to decline, the incentive for these miners to sell their assets to remain profitable increases.
This drop in miner profitability could further increase selling pressure on BTC.
Source: Blockchain.com
Read Bitcoin (BTC) price prediction 2024-2025
How is BTC doing?
At the time of writing, BTC was trading at $67,268.41. Over the past 24 hours, the BTC price has fallen by 0.35%. Despite the price drop, BTC trading volume increased by 25.26%.
The revival of trading volume for BTC could be an indicator of renewed interest in the coin. If volume continues to grow, a positive change in price may also be reflected.
Source: Santiment