Bitcoin’s price has been under significant selling pressure, resulting in a decrease of more than 5.5% over the past week and hitting a low of $58,400 on June 25, the lowest in six weeks. The decline has led to concerns of a deeper correction as BTC fell below its short-term cost basis, according to market intelligence firm Glassnode.
Glassnode’s “Week On-chain” newsletter, released on June 25, stated that the spot price has dropped below the cost basis of both the 1w-1m holders ($68.5k) and 1m-3m holders ($66.4k) since mid-June.
The short-term holder (STH) cost basis, also known as realized price, refers to the average acquisition price of BTC for investors who are considered short-term holders. This is typically defined by the movement of coins that have been held for less than 155 days. Data from LookIntoBitcoin shows that BTC’s breach of the $64,000 level on June 23 caused it to fall below the STH realized price at the time, which was $64,591.
Additionally, the latest drawdown was close to pushing the price below the cost basis of the 3m–6m holders at $57,300, which continues to rise despite the price decline.
The report also points out that the cost basis of the 1w-1m holders has fallen below the 1m–3m cost basis, indicating “a diminishing momentum in the demand side, and a net capital outflow from the asset.”
In terms of spot Bitcoin ETFs, there was a slight increase in inflows on June 25, with 10 United States-based spot Bitcoin exchange-traded funds (ETFs) receiving total inflows of $31 million, ending a seven-day period of outflows. Fidelity’s ETF FBTC led net inflows with $49 million, followed by the Bitwise Bitcoin ETF BITB with $15 million in inflows, and the VanEck Bitcoin Trust ETF HODL with $4 million in net inflows.
On the other hand, the Grayscale ETF GBTC experienced a single-day outflow of $30.2 million, while the ARK 21Shares Bitcoin ETF reported $6 million in net outflows. Since their launch on Jan. 11, the 10 spot Bitcoin funds have seen net inflows of $14.42 billion, with assets under management totaling more than $53.56 billion.
The significant outflows from the spot Bitcoin ETFs over the past few weeks are the highest since April, when total net outflows exceeded $1.2 billion between April 24 and the beginning of May.
It is important to note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.