ChainCatcher report, according to Cointelegraph, the crypto analytics platform Swissblock stated that Bitcoin is slipping into a high-risk environment due to sustained institutional selling. Its Bitcoin Risk Index is currently at 33 points, placing it in the high-risk zone. Swissblock noted that whenever the risk index signals structural selling pressure overwhelming the market, it is driven by institutional sellers. Glassnode reported that since May 7, U.S. Bitcoin ETFs have recorded net outflows on nearly every trading day, with continuous institutional selling pressure adding strain to the supply side without any offsetting demand. Jeff Ko, Chief Analyst at CoinEx, said that spot ETFs have seen over $2 billion in outflows over the past two weeks, with institutional risk appetite remaining marginally sensitive. News of new U.S. strikes against Iran earlier Tuesday further heightened risk sentiment, causing Bitcoin to drop 1% from $77,000 to below $76,500.
Bitcoin Enters High-Risk Zone as ETF Outflows Signal Institutional Selling
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Summary
Bitcoin has entered a high-risk zone with a risk index score of 33, according to Swissblock. ETF outflows from U.S. Bitcoin ETFs have continued for over two weeks, per Glassnode, increasing selling pressure. CoinEx analyst Jeff Ko noted over $2 billion in spot ETF outflows recently, with institutional risk appetite remaining cautious. A U.S. strike on Iran triggered a 1% drop in Bitcoin on Tuesday, pushing prices below $76,500.
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