According to U.Today, Bitcoin has been unable to maintain a value above $70,000, and several factors may be contributing to this. The recent cluster data of liquidations, ETF inflows, and market trends provide some insights.
The liquidation heatmap data reveals significant sell-offs that have contributed to Bitcoin's price decrease. The $72,000, $69,000, and $66,000 levels experienced substantial clusters of liquidations, indicating strong selling pressure. This pressure resulted from the forced closure of leveraged positions, causing the price to drop. This cascading effect from liquidations often leads to a rapid and sharp decline in Bitcoin's price.
Another significant factor is the withdrawal from U.S. ETFs that track Bitcoin. After 19 days of inflows, these ETFs experienced a net outflow of $64.93 million on Monday. This trend suggests that investors are shifting from accumulation to profit-taking or risk reduction. Grayscale's GBTC had the highest outflow, totaling $40 million, followed by Invesco Galaxy Digital's BTCO, Valkyrie's Bitcoin ETF, and Fidelity's FBTC. The withdrawal from Bitcoin ETFs indicates a decrease in institutional interest, despite the relatively low volume of outflows.
Lastly, the market dynamics show a general decline in enthusiasm. Despite a 19-day streak of net inflows totaling over $4 billion, bringing the total net inflow for spot Bitcoin ETFs since January to $15 billion, the overall trend has turned negative. The only funds to record net inflows of $6 million and $8 million, respectively, were Bitwise's BITB and BlackRock's IBIT. This shift in sentiment is likely due to profit-taking following an extended period of positive inflows, not only among institutional investors.