ETF Outflow & Geopolitics, Bitcoin Plunges
Bitcoin weakened again on Thursday (June 4th) amid risk-off sentiment triggered by escalating Middle East tensions and uncertainty over the direction of negotiations. Bitcoin's price briefly touched an intraday low of US$61,503 before stabilizing around US$63,637, still down around 3.3% on the day.
The main pressure came from institutional fund flows. Consecutive outflows from US spot Bitcoin ETFs weakened "passive" demand, while investors shifted exposure to themes perceived as having longer-term fundamentals, such as artificial intelligence stocks. At the same time, the strengthening of the dollar, a defensive asset, also put pressure on non-yielding speculative assets like crypto.
Market psychology also weighed, after Strategy—a large corporate Bitcoin holder—signaled a bearish signal with its first Bitcoin sale in years. While the volume was small, this move again raised questions about the resilience of treasury strategies that rely heavily on consistent Bitcoin price increases.
The weakening wasn't unique to Bitcoin. Ethereum fell and traded around US$1,772 after hitting an intraday low of US$1,730. Other major altcoins also fell, reflecting the crypto market's resumption of movement as global risk appetite declined.
Looking ahead, the direction of crypto remains highly sensitive to two catalysts: whether geopolitical tensions ease (which could reduce demand for the dollar/safe haven) and whether ETF inflows reverse. As long as these two factors remain unchanged, the recovery is likely to be fragile and volatility remains high. (Arl)
Source: Newsmaker.id
