Bitcoin Enters High-Risk Zone as Institutional Funds Continue to Withdraw, Highlighting Selling Pressure Concerns

BlockBeats News, May 26th - According to a new report from the blockchain analytics platform Swissblock, Bitcoin is gradually entering a high-risk environment, mainly due to ongoing institutional fund outflows, especially driven by the net outflows of the U.S. Bitcoin spot ETF. Historical data shows that whenever this index indicates selling pressure overwhelming the market at a structural level, it often corresponds to systematic distribution behavior by institutional funds.

Simultaneously, on-chain data analytics firm Glassnode pointed out that since May 7th, the U.S. Bitcoin spot ETF has experienced net outflows almost every trading day, with the institutional selling signal persisting for over two weeks. "Such sustained outflows continue to exert pressure on the market's supply side, and currently, there is not enough observable buy-side demand to offset it," further exacerbating the supply-demand imbalance risk.

On the market front, Bitcoin came under short-term pressure on Tuesday due to geopolitical disruptions. Reports indicated a new round of U.S. military strikes against Iran, despite recent progress towards a peace agreement. Bitcoin's price subsequently fell by about 1%, briefly dipping from above $77,000 to near $76,500, but overall, it still maintained its ranging pattern seen over the past four months. Jeff Ko, Chief Analyst at CoinEx, stated that while geopolitical events may trigger short-term fluctuations, the market's focus may still lean towards potential U.S.-Iran reconciliation progress, keeping the overall crypto market "in a wait-and-see mode."

Overall, the current Bitcoin market faces dual pressures. On one hand, continuous outflows from the spot ETF weaken crucial buying support; on the other hand, geopolitical uncertainties amplify short-term volatility risks. If institutional risk appetite does not marginally improve, the risk index may further rise, necessitating caution against adjustment pressure from technical selling and emotional resonance.