The Bitcoin market weakened again at the start of June. Foreign media believe that weak seasonal performance, outflows from US spot Bitcoin ETFs, and a decline in stablecoin supply are all suppressing market risk appetite, making a short-term rebound in BTC more difficult.
June's seasonality is inherently weak.
CoinGlass data shows that June is historically not a strong month for Bitcoin, with an average return of approximately -0.8%, placing it in the weaker range for the year. The previous month's end to BTC's multi-month upward trend made the market more likely to adopt a cautious stance as June began.
The article argues that in the absence of new catalysts, seasonal weakness itself could amplify downward pressure. If market risk appetite continues to decline, BTC may struggle to quickly recover its previous losses.
Spot ETFs saw outflows of $1.42 billion in a single week.
In terms of funding, institutional investor activity also offered no support. The report cited data showing that US spot Bitcoin ETFs experienced net outflows exceeding $2.43 billion in May, with outflows accelerating significantly towards the end of the month.
Over the past week, spot Bitcoin ETFs saw net outflows of approximately $1.42 billion, marking the third-largest weekly outflow in history. Based on this, the article concludes that institutional fund withdrawals are exacerbating market defensive sentiment and weakening the foundation for Bitcoin's short-term stabilization.
Stablecoin supply continues to decline
Foreign media outlets also consider stablecoin liquidity to be the most noteworthy demand indicator in June. Historically, an expansion in the supply of stablecoins has typically meant more funds entering the crypto market, helping to support risk assets such as Bitcoin.
However, current data suggests the situation is moving in the opposite direction. At the end of May, the total market capitalization of stablecoins decreased by approximately $3 billion, indicating that market liquidity has not increased but rather is declining. Tether's USDT supply has also contracted; reports indicate that over $1 billion worth of USDT recently exited circulation in just four hours.
The article argues that against the backdrop of continued outflows from ETFs, the declining supply of stablecoins has further weakened buying power. If this trend continues, Bitcoin will not only struggle to mount a strong rebound in June, but the gains it has already made in the second quarter may also be impacted.
