Foreign media reports indicate that since May 7th, Bitcoin ETFs have seen a net outflow of over $4.01 billion, with institutional funds withdrawing at a faster pace, suggesting a significant weakening of demand compared to the previous period. Market sentiment is currently more cautious compared to the previous phase of continuous inflows.
ETF fund flows have weakened significantly.
The article notes that historically, Bitcoin's strength in the market has often been accompanied by continuous inflows into ETFs, while sustained net outflows typically correspond to a decline in risk appetite. Currently, BTC has not yet regained its key resistance level, and insufficient new institutional buying is putting pressure on liquidity.
However, this round of capital withdrawal appears more like institutions reducing their risk exposure than a concentrated panic sell-off. Foreign media believe that if the macroeconomic environment or overall market sentiment improves, there is still room for institutions to shift their stance.
$73,000 becomes short-term support
As of press time, BTC was trading around $73,459, having returned to the $73,000 level. This position is considered the first major support zone for buyers. The price previously retreated from the $81,000 area, indicating that selling pressure above has not yet subsided.
The article mentions that the near-term resistance level for BTC is at $77,732, with stronger resistance at $82,568. If the $73,000 support holds, the price may first test the $77,700 area; if it falls below, the lower support levels will continue to act as resistance.
On-chain activity has not kept pace with valuation.
On-chain data shows that the Bitcoin NVT ratio rose 21.81% to 23.24, meaning that market capitalization growth is outpacing on-chain transaction activity. This typically indicates that network usage intensity has not improved in tandem, and the scope of financial participation remains limited.
Foreign media believe that the rise in NVT coupled with weakening ETF demand indicates that the current market recovery still lacks broader capital participation. However, current readings are still below levels common during market overheating phases, thus indicating a slowdown in activity rather than extreme overvaluation.
Overall, continued outflows from ETFs are putting pressure on Bitcoin, but active buying in the spot market has not disappeared. In the short term, the market will focus on whether the $73,000 support level holds and whether on-chain transaction activity can recover.
