Bitcoin has fallen to its lowest level this week since 2024 and has fallen by over 30 per cent in the year. While prices are falling, the continued outflow of spot ETF funds, weak institutional holding signals, and the Federal Reserve’s policy’s expected preference for eagles are collectively suppressing market sentiment.

ETF continues to drag prices

According to Business Insider, quoted by Deutsche Bank, the real bitcoin ETF accumulated about $6 billion in outflows over the past six weeks, creating the longest record of continuous outflows since its launch in early 2024. It was reported that the demand for ETFs had been an important force in bitcoin prices for almost two years, and that the decline would be magnified by the shift from inflow to outflows.

At present, the price of bitcoin is approximately $592 million, about 53 per cent higher than last October, when it was more than $126,000. The performance of the Taipei has been weaker, with a drop of 48 per cent during the year.

  • Bitcoin went down 30% in the year.
  • Higher than history, about 53%.
  • ETF Six weeks out about $6 billion

Strategy's selling more speculation.

Another market-magnified signal came from Strategy. It was reported that the company, founded by Michael Saylor and known for its long term as “bitcoin holder”, had disclosed 32 bitcoins on 1 June. This was the first time that the company had sold bitcoin since December 2022.

In quantitative terms, the sale represented only 0.004 per cent of its hold, a small single scale and a limited immediate reaction at the time of the price. But the market is more concerned with signal meaning. Strategy, as one of the world's largest business bitcoin holders, could further discourage emotions once it continues to decline.

It was reported that the current price of bitcoin was lower than the average warehouse cost of Strategy of approximately $75699. As currency prices break down, the market begins to account for the risk that high-leveraging business holders may be forced to sell. It also made it possible for Strategy to continue selling money and become the subject of discussion in the market this year.

AI took away the money, the Fed expected the eagle.

In addition to the pressure within the encrypted market, some of the funds are moving to the AI block. According to analysts, the continued pursuit of artificial intelligence and the subject of chips by the diaspora is weakening interest in encrypted assets. The rapid outflow of bitcoin ETF in nearly a month contrasts with the strong inhaling of multiple AI and chips ETF.

At the macro level, the hawk position of the new Federal Reserve Chairman, Kevin Walsh, has also increased the pressure on risk assets. This month ' s policy meeting largely dispelled the market ' s expectations of a reduction in interest rates and even increased the likelihood of further increases. This change is not favourable for risk assets such as bitcoin.

According to the German Bank, quoted in the report, bitcoin did not exit the market, but its pricing was increasingly influenced by fund flows, interest rate expectations, competition for other high-risk topics and policy progress.