Big money is fleeing Bitcoin as it crashes below $70K — bet on more downside
Bitcoin has fallen below $69,000 to its lowest point in two months. Big institutional investors have been pulling money out of Bitcoin funds for 11 straight days, totaling $3.45 billion in outflows. Meanwhile, a Federal Reserve official just warned that interest rates may need to go higher to fight inflation.
Idea
Bitcoin is getting hit from multiple angles at once. Institutional money is fleeing — $3.45 billion has been pulled from Bitcoin ETFs over just 11 days. On-chain activity is drying up, meaning fewer people are actually using the network. Add to that a Fed official warning rates may need to rise further to tame inflation, which is typically toxic for speculative assets like crypto. Bitcoin has already fallen 36% over the past year, and breaking below the psychologically important $70,000 level often triggers another wave of selling as traders who bought higher up are forced to cut losses. The trend is clearly down and multiple signals agree.