Bitcoin fell to its lowest level in almost two months on Tuesday, extending a prolonged period of weakness driven by persistent institutional outflows and deteriorating investor confidence.
Spot Bitcoin ETFs recorded USD 483 million in outflows on Monday, marking the eleventh consecutive session of withdrawals.
In May, outflows totalled approximately USD 2.4 billion, highlighting a sustained reduction in institutional exposure.
Derivatives markets reinforce the bearish picture. Over the past 24 hours, long liquidations reached roughly USD 688 million compared with USD 114 million for short positions, indicating increased downward momentum and limiting the market’s ability to stabilise.
Additional uncertainty emerged from on-chain developments. The transfer of nearly USD 739 million worth of Bitcoin from wallets linked to the former Mt. Gox exchange raised concerns about potential future supply entering the market. Meanwhile, Strategy’s decision to sell some of its Bitcoin holdings, although the operation’s size remains limited, signals a potential change in the company’s accumulation strategy.
Looking ahead, Bitcoin remains highly sensitive to geopolitical developments in the Middle East and their impact on inflation expectations, central bank policy, and global risk sentiment. With policymakers increasingly leaning toward caution, the macro environment could continue to weigh on cryptocurrencies.
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