Bitcoin Weakens After $25 Billion Capital Outflow

Bitcoin is losing momentum as ETF capital is withdrawn. Bitcoin price is around $100,000 but lacks momentum to break out.

Bitcoin has entered a period of weakness after a year of explosive growth. While it has not fallen sharply, Bitcoin is hovering around $100,000 and has lost the upward momentum it had at the beginning of the year. Compared to gold or tech stocks, Bitcoin's increase of about 10% since the beginning of the year is considered quite modest.

Bloomberg reported that about $25 billion that had been poured into Bitcoin through ETFs and businesses is now gradually withdrawing. As this large amount of capital flows back, the Bitcoin market loses its key support and the price slows down significantly.

According to experts, fatigue has emerged among fund managers after months of waiting for Bitcoin to break new highs without success. Markus Thielen, CEO of 10X Research, said many professional investors are losing patience as Bitcoin returns have not met expectations.

He said that if Bitcoin continues to fall, risk management departments will ask to reduce positions or stop orders altogether. Some of the money could move into technology stocks like Nvidia, which have been a big performer this year.

Data shows that Bitcoin ETFs have sold about $2.8 billion in the past month alone. If this trend continues before the December Fed meeting, the Bitcoin market could see more capital withdrawals.

On-chain analysis shows that many long-term investors have been reducing their positions while Bitcoin is still in the high price zone. If Bitcoin falls below $93,000, there is a possibility of more technical selling from large trading groups.

Citi Research notes that the number of wallets holding more than 1,000 Bitcoins is falling. Meanwhile, retail investors have increased slightly but not enough to offset the withdrawal from large groups. New money flows into Bitcoin have slowed down, and the market is starting to show signs of cooling.

Even Michael Saylor, the icon of corporate Bitcoin hoarding, is under pressure as MicroStrategy's stock largely reflects the value of the company's Bitcoin holdings.

Despite the weakening momentum, the Bitcoin market has shown no signs of panic. Bitfinex data shows that the amount of Bitcoin in large wallets (over 10,000 BTC) decreased by only 1.5% in October, too low to be considered a sell-off.

Bitfinex experts believe this is just a profit-taking phase after a strong growth cycle at the beginning of the year. Such rebalancing cycles often help Bitcoin reduce volatility, thereby creating a foundation for a new growth cycle when money flows back.

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Source: https://baonghean.vn/bitcoin-suy-yeu-sau-cu-rut-von-25-ty-usd-10311279.html