Bitcoin faces a triple threat — ETF outflows, Mt. Gox selling, and corporate dumps — position for further downside
Bitcoin is getting hit from every direction: billions are flowing out of Bitcoin ETF funds, the collapsed exchange Mt. Gox just moved $739 million worth of Bitcoin (signaling they may soon dump it on creditors), and a major corporate holder disclosed selling Bitcoin for the first time. The price has fallen below $71,000.
Idea
Three separate bearish forces are hitting Bitcoin at the same time. First, U.S. Bitcoin ETFs have seen 11 straight days of outflows totaling $3.4 billion — the worst streak since the funds launched. Second, Mt. Gox just moved $739 million in Bitcoin from cold storage for the first time since March, which historically signals that creditor distributions (i.e., selling pressure) are imminent. Third, the company formerly known as MicroStrategy disclosed its first-ever Bitcoin sale, shaking confidence among the largest corporate holders. When institutional selling, potential creditor dumps, and corporate profit-taking all land together, the downward pressure tends to feed on itself for weeks.