The world’s largest Bitcoin ($ BTC) spot-listed fund (ETF) saw outflows of more than $ 500 million late last week, which could have triggered the collapse of the flagship cryptocurrency below $ 18,000.
According to a Norwegian study Archanic researchreport first CoinDeskThe Purpose Bitcoin ETF saw an outflow of 24,510 BTCs on Friday, June 17, making it the most serious one-day redemption the fund has seen since it was listed on the Toronto Stock Exchange.
These outflows forced the fund to sell approximately $ 500 million worth of BTC at market prices, increasing sales pressure in the market. Arcane analyst Vetle Lunde wrote:
The huge outflows are likely due to a forced seller in a huge liquidation. The forced sale of 24,000 BTC could have triggered BTC’s move toward $ 17,600 this weekend.
Bitcoin ETFs monitor the flagship value of a cryptocurrency and allow investors to be exposed to BTC without directly holding it. These funds can be bought and sold on traditional stock exchanges and BTC can be actively added to and sold to meet the inflows and outflows of investors.
Prior to the $ 500 million outflow, the Purpose Bitcoin ETF was by far the largest Bitcoin ETF, controlling approximately 48,000 BTCs.
By CryptoCompare According to the data, the price of Bitcoin fell to a low of $ 17,639 after a significant sale on June 18, when it went under support to about $ 20,000, marking the peak of the cryptocurrency in the 2017 bull run. BTC has since recovered and is now trading at $ 20,500.
The cryptocurrency foreign exchange market has collapsed due to a number of macroeconomic factors, including sharp inflation around the world and Russia’s ongoing invasion of Ukraine, combined with the freezing of the cryptocurrency Celsius Network’s platform in “extreme market conditions”. These factors have seen the total value of cryptocurrency fall below $ 1 trillion for the first time since early 2021.
As CryptoGlobe reports, before BTC fell below $ 20,000 Fidelity’s global macro director Jurrien Timmer said Bitcoin’s P / E measure using cryptocurrency price and network ratio last returned to the level seen in 2017 and 2013, although cryptocurrency price returned to late 2020 level.
Meanwhile, former hedge fund manager Jim Cramer, who has previously said he directly owns Ethereum ($ ETH) and urged viewers to consider investing in Coinbase stocks (NASDAQ: COIN) in August 2021, has recently said he will see the price of Bitcoin. ($ BTC) will drop to $ 12,000 in the future.
As reported, Bitcoin whale activity has recently peaked at a 4-month high as $ BTC whales have begun buying the flagship cryptocurrency as it approached critical support at $ 20,000.
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h/t – CryptoGlobe