Reasons for BTC's weakness include Mt. Gox coin movements, regulatory actions, and the U.S. Senate's anti-crypto lobby.
Bitcoin (BTC) has experienced a 6.7% drop after almost reaching $72,000 on May 21, settling at $67,100. This decline does not necessarily signal a bearish trend, as Bitcoin is still only 8.7% below its all-time high. However, investors are puzzled why the recent inflows into Bitcoin spot exchange-traded funds (ETFs) haven't sparked more bullish sentiment.
Data from Farside Investors reveals $1.96 billion in net inflows into U.S. spot Bitcoin ETFs since May 15, equivalent to 64 days of BTC issuance from miners. Notably, the U.S. spot Bitcoin ETF market has now exceeded $50 billion in assets under management. In comparison, U.S. gold ETFs hold about $118.5 billion, according to the World Gold Council.
Moreover, inflows into spot Bitcoin ETFs typically prompt the withdrawal of Bitcoins from exchanges, which has dropped to its lowest level since March 2018—2.3 million BTC, as per Glassnode data.
