Declining Bitcoin Spot ETFs Affect BTC Price
Investors' risk-averse sentiment is evident in Bitcoin spot ETFs, where investors have been withdrawing their capital for days.
On June 19, spot Bitcoin ETFs in the US recorded capital outflows for the fifth consecutive day, bringing total withdrawals for the week to $900 million. This is the highest outbound activity since late April.
Decreased network activity supports Bitcoin decline
Another reason why the price of Bitcoin continues to decline could be reduced demand due to the drop in network activity.
Glassnode data reveals that daily active addresses on the Bitcoin network have fallen from 971,789 addresses on April 4 to 632,620 on June 20. This represents a 35% decrease over the past 90 days.
Bitcoin price loses key support levels
From a technical perspective, Bitcoin’s price drop today is part of a broader correction that began after it was rejected from the $72,000 resistance level on June 7. During this pullback, BTC has lost key support levels, including the 50-day and 10-day exponential moving averages (EMA), which are currently at $66,724 and $66,594, respectively.
