Bitcoin continues to fall, and the decline may not stop yet

Bitcoin has fallen to 62,000 points after hitting a record high, with a cumulative decline of nearly 15% in the past week. The reason behind this is in addition to the recent higher-than-expected U.S. Producer Price Index (PPI), which has caused market concerns about the Fed's delay in cutting interest rates. In addition, the net outflow of Bitcoin ETFs is also a major impact. According to statistics from Farside Investors, Bitcoin spot ETFs experienced net outflows for two consecutive days, with US$154 million and US$326 million flowing out on March 18 and March 19 respectively. , showing that the recent market demand for Bitcoin spot ETFs is cooling down. Among them, Grayscale’s Bitcoin Spot ETF (GBTC) had a total net outflow of US$1.086 billion in the past two days.

Although coinglass's RSI indicator shows that Bitcoin's overbought sentiment has cooled down a lot, the daily RSI dropped to 48.6. However, Anders Helseth and Vetle Lunde of the cryptocurrency research organization K33 Research said in a recent report: The current large-scale "washout" (Washout) using derivatives to bet on bullishness may continue, so it will be liquidated by the longs, that is, The risk of continued expansion of downward fluctuations caused by the liquidation of long positions is still considerable.