Bitcoin continued its decline in early June, briefly falling below the $70,000 mark. Foreign media reported that as prices weakened, funds continued to flow out of US spot Bitcoin ETFs, while net inflows into on-chain exchanges increased, indicating a significant cooling of market sentiment.
ETFs continue to see outflows
According to SoSoValue data, the spot Bitcoin ETF saw a net outflow of $483.76 million on June 1st. This marks the first net outflow since May 15th. During the same period, the price of Bitcoin fell from $81,090 to approximately $69,590, a cumulative decline of 14.18%.
The article argues that the continued weakening of ETF liquidity has become a significant factor contributing to recent price pressure. For the market, this means insufficient new buying interest and a decline in short-term risk appetite.
Increased Whale Transfers and Exchange Inflows
According to on-chain data platform Santiment, the number of Bitcoin transactions exceeding $100,000 has risen to its highest level since April 22. Historically, such large transactions have sometimes been seen as accumulation signals, but the context this time is different.
AMBCrypto, citing exchange net transfer data, stated that Bitcoin inflows into exchanges exceeded outflows over the past week, with the 7-day average remaining positive since May 18th. Typically, more Bitcoin entering exchanges means holders are more likely to prepare to sell rather than continue accumulating.
Volatility contracted but downward pressure persisted.
Analyst Axel Adler Jr.'s weekly realized price volatility index shows it has fallen from 39 in early March to 17 currently, near historical lows. The article argues that this does not indicate market calm, but rather suggests that prices are building for the next round of even greater volatility.
Another indicator comparing market capitalization growth rate with realized market capitalization growth rate also shows that the current market price does not reflect a significant premium, which is different from the high confidence level commonly seen during bull markets. Based on this, foreign media judge that Bitcoin's medium- to long-term trend remains weak, and if the high-level structure continues to break down, the price may face further declines.
