Recent data from blockchain sources suggests that the enthusiasm among investors to “buy the dip” in Bitcoin has been fading, which is adding more downward pressure on its price.
Additionally, the outflows from the Grayscale Bitcoin Trust (GBTC) are signaling potential challenges for any further upward momentum.
Investor interest in Bitcoin seems to be on the decline, as evidenced by consecutive days of outflows from Bitcoin ETFs on May 10th. The GBTC, in particular, has seen substantial outflows, totaling over $100 million on Friday alone, contributing to a combined outflow of $84 million across all Bitcoin ETFs.
While Bitcoin ETFs are experiencing outflows, traditional financial players are still showing interest. Major banks like JPMorgan and Wells Fargo have disclosed their holdings in various Bitcoin ETFs, underscoring institutional interest in this investment product.
JPMorgan, for instance, has revealed significant holdings in different Bitcoin ETFs, including over 25,000 shares of Bitcoin Depot Inc. worth nearly $47,415. Similarly, Wells Fargo disclosed holding over 2,000 shares of the Grayscale Bitcoin ETF (GBTC).
Meanwhile, the price of Bitcoin has dropped by 3.5% in the last 24 hours, nearing the critical support level of $60,000. This decline in price is occurring amidst ongoing outflows and a lack of significant buying interest in Bitcoin. Traders seem hesitant to embrace the “buy the dip” strategy, reflecting a general lack of confidence in the market. Monitoring social sentiment can provide insights into the prevalence of Fear, Uncertainty, and Doubt (FUD) in the market, according to analysts.
