Many analysts say a drop in spot Bitcoin ETF demand is the primary reason for BTC’s price weakness, but there’s more to it than that.
Bitcoin (BTC) has struggled to maintain above $60,000 for an entire week, with the latest rejection occurring on Aug. 27. The subsequent 9.9% two-day correction, which saw Bitcoin fall to a low of $57,918 on Aug. 28, resulted in the forced liquidation of $143 million in leveraged BTC longs on derivatives exchanges. Traders are now questioning why Bitcoin keeps failing to break above $60,000.
Some analysts attribute the recent weakness to the disappointing spot Bitcoin exchange-traded fund (ETF) outflows. However, such data is typically reflexive, meaning traders often turn bearish after a news event alters their perception. More crucially, Bitcoin's most recent correction on Aug. 29 coincided with movements in the S&P 500 index.
Bitcoin/USD (left) vs S&P 500 futures (right). Source: TradingView
