Bitcoin dropped 2.24% after ETF outflows raise market concentration worries

Traders Union
All News
Crypto
Bitcoin slips 2.24% today amid pressure

Highlights

Spot Bitcoin ETFs faced $903 million in outflows, dominated by BlackRock's IBIT, despite year-to-date cumulative inflows holding at $57.4 billion.
BlackRock now controls 48.5% of total Bitcoin ETF assets, intensifying concerns about market concentration and potential impact on liquidity.
Corporate holders like MicroStrategy are experiencing increased unrealized losses and volatility amid requests from U.S. crypto groups for clearer regulatory guidance and anticipation of the Bitcoin Munari blockchain.

ETF outflows and concentration risks rise amid persistent volatility

Spot Bitcoin ETFs have seen substantial outflows with $903 million withdrawn, led by BlackRock's IBIT, even as year-to-date cumulative inflows stay robust at $57.4 billion. Corporate holders like MicroStrategy are now dealing with heightened unrealized losses and volatility. BlackRock controls 48.5% of Bitcoin ETF assets, raising market concentration concerns, while ecosystem news includes the upcoming Bitcoin Munari blockchain and ongoing requests from U.S. crypto groups for clearer regulations.

Downside risk grows as indicators confirm oversold, bearish momentum

Momentum indicators on the daily chart confirm a bearish bias for BTC: it trades far below dynamic resistance at the Ichimoku Kijun ($98,566.25) with no supportive average below, while the MACD, ADX, and Awesome Oscillator show strong selling pressure and negative momentum. RSI, Stoch RSI, CCI, and Bull/Bear Power all point to oversold conditions and dominant selling activity, with price action lingering near the session’s lower end and moderate volatility reinforcing downside risk.

Further declines likely as technical signals eliminate bullish prospects

In the short term, BTC is expected to consolidate sideways inside a tightened band ranging from $83,500 to $87,500, with more than an 80% probability of further decline given all prevailing technical signals. No buy signals are visible in weekly RSI, ADX, MACD, or MA-50, making a price recovery scenario highly unlikely. A sustained move above $98,566 would be required to shift the trend to bullish, but the base scenario is for continued pressure and possible new local lows if $83,500 is breached.

Viktoras Karapetjanc, Traders Union expert, sees Bitcoin under heavy technical and macro pressure but notes the foundation of robust ETF inflows. He believes outsized BlackRock dominance and corporate exposure add structural risk, yet strong year-to-date investment shows resilient institutional demand. The prevailing trend remains bearish in the short term, with technicals lacking recovery signals. However, Karapetjanc points out that crypto sector calls for regulatory clarity and new blockchain developments could change sentiment rapidly. "Above $98,566, momentum could return quickly, so I remain attentive for a structural reversal as market confidence rebuilds."

Previously it was noted that U.S. authorities were investigating Chinese bitcoin-mining hardware giant Bitmain over potential national-security risks tied to alleged remote-management capabilities. According to the article, Bitmain controls more than 80% of the global bitcoin ASIC market, raising concerns about critical infrastructure security in the United States.

Source of Data: BTC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.