Bitcoin in a corrective phase as profit-taking and ETF outflows weigh

Crypto Now

Trading around the KRW 130 million range for two months

Concerns over potential removal from the MSCI index also a factor

Bitcoin has recently been moving sideways in the KRW 130 million range. With the short-term upswing losing steam, the market is offering a range of interpretations as to what is driving this pullback.

According to Upbit, a South Korean crypto exchange, on the 11th, Bitcoin has traded around the KRW 130 million level over the past two months. Analysts say profit-taking supply and a slowdown in inflows into exchange-traded funds (ETFs) have weakened the momentum that had been lifting prices.

In global markets, trading has continued in the low USD 90,000 range. Crypto-focused outlet BeInCrypto said the pullback is coinciding with profit-taking sales worth about USD 100 million. In particular, a heavy concentration of sell orders in the USD 94,000–95,000 band formed a strong resistance level, and when prices failed to break above that zone, a wave of selling to lock in short-term gains hit the market at once.

ETF flows also added pressure. U.S. spot Bitcoin ETFs posted net outflows on every day last week except one. On the 6th and 7th, USD 243.20 million and USD 486.10 million, respectively, were withdrawn, weakening a key driver that could have pushed prices higher.

Adding to the headwinds, concerns that companies linked to digital assets could be removed from Morgan Stanley Capital International (MSCI) indexes also cooled sentiment. MSCI said it does not plan to change its criteria immediately, but left the door open by saying it would revisit standards related to digital asset-related companies.

Another point drawing attention is that long-dormant Bitcoin has been moving onto exchanges. According to CryptoQuant, there has recently been a trend of long-held Bitcoin being transferred to exchanges. That is why some analysts say the decline reflects growing sell-side supply rather than a simple technical correction.

Ki Young Ju, CEO of CryptoQuant, said, "Funds flowing into Bitcoin have cooled," adding, "Rather than a sharp drop, it is likely to trade in a range for some time."