"Bitcoin sees continued institutional outflows…possible additional trough test through summer"

Bitcoin has bounced after narrowly avoiding a break below the $60,000 level, but doubts persist over whether the move marks a trend reversal as selling by institutional investors continues. Some analysts say that after a short-term technical rebound, Bitcoin could form another low through the summer.

According to BlockBeats, a cryptocurrency-focused media outlet, Markus Thielen, head of research at 10x Research, said in a recent CNBC interview that "institutional investors are actually reducing their crypto holdings," adding that "the current large-scale outflows are concentrated during U.S. trading hours, and some investors have effectively entered a capitulation phase."

He pointed to flows in spot Bitcoin ETFs as a particular source of concern. Thielen said "the average cost basis for investors who bought Bitcoin via ETFs is around $90,000," explaining that "most of them are currently sitting in a meaningful loss zone." He added that "the fact that large outflows are occurring during U.S. trading hours shows that institutional investors are unwinding positions."

On the price front, he also assessed that there is still room for further declines. Bitcoin is currently down more than 40% from its all-time high, while Ethereum and XRP are down more than 60% from their peaks and Solana has slid more than 70%. Thielen said that "the move itself of Bitcoin falling below $70,000 suggests the possibility of further downside."

10x Research is not ruling out the possibility that Bitcoin, after a short-term rebound, could fall again toward the $50,000 level. Thielen said, "In the near term, a technical rebound could emerge with prices moving sideways or ticking up slightly," but added that "during the summer, there is a strong likelihood of forming another lower low."