Bitcoin Briefly Slides to $58,000 as ETF Outflows, Options Expiry Jolt Market
Summary
- Bitcoin fell about 9% over the past three trading sessions to $58,000 and showed only a limited rebound amid institutional investor outflows.
- A $469 million net outflow from US spot Bitcoin ETFs in a single day, a $13 billion options expiry, and put-option open interest exceeding calls are weighing on investor sentiment.
- Growing unrealized losses on Strategy's Bitcoin holdings, contrasted with a surge in AI-related tech stocks, are raising the possibility that Bitcoin will continue to trade weakly apart from the stock market.
Forecast Trend Report by Period
Bitcoin briefly fell to $58,000, its lowest level since September last year, as outflows from spot exchange-traded funds and pressure from a large options expiry weighed on the market.
Cointelegraph reported on June 25 that Bitcoin dropped about 9% over the past three trading sessions to $58,000. It later rebounded to around $59,500, but the recovery has been limited as institutional money continues to leave the market and caution builds ahead of the options expiry.
More than $1 billion of long Bitcoin positions were liquidated during the decline. In contrast, the S&P 500 and gold both erased their intraday losses, diverging from Bitcoin's price action.
Slowing institutional demand is adding to the pressure. US spot Bitcoin ETFs recorded net outflows of $469 million in a single day. Market participants view spot ETF flows as a key gauge of institutional investor demand.
Sentiment is also being hit by roughly $13 billion in Bitcoin options due to expire on June 27. About 78% of all call options have strike prices of $72,000 or higher, meaning most are likely to expire worthless at current prices. On derivatives exchange Deribit, open interest in put options was $3.4 billion higher than in call options.
Growing unrealized losses at Strategy, the largest corporate holder of Bitcoin, have also added to the overhang. Strategy has bought a total of $64.1 billion worth of Bitcoin since 2020, but the recent price drop has significantly widened its paper losses.
By contrast, investor money has been pouring into AI-related technology stocks. Micron surged 16% after reporting strong earnings, while SanDisk climbed 18%. Applied Materials gained 10% after unveiling new semiconductor equipment. US government support for the AI industry is also helping underpin sentiment toward tech stocks.
With ETF outflows, options-expiry pressure and softer institutional demand hitting at once, Bitcoin could continue to trade weakly for the time being, separately from the broader stock market.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE