Huo Xing Finance reports that, on May 26, blockchain analytics platform Swissblock released a new report indicating that Bitcoin is gradually entering a high-risk environment, primarily driven by sustained institutional selling, especially through net outflows from U.S. spot Bitcoin ETFs. Historical data shows that whenever this indicator signals structural selling pressure overwhelming the market, it typically corresponds to systematic distribution by institutional capital. Chain analysis firm Glassnode also noted that since May 7, U.S. spot Bitcoin ETFs have shown net outflows on nearly every trading day, with institutional selling signals persisting for over two weeks. “This sustained capital outflow continues to exert downward pressure on market supply, while no sufficient buying demand has yet emerged to offset it,” further exacerbating the risk of supply-demand imbalance. On the market front, Bitcoin came under short-term pressure on Tuesday due to geopolitical tensions. Reports indicated that the U.S. launched a new military strike against Iran, despite recent progress toward a peace agreement between the two sides. Bitcoin’s price subsequently dropped approximately 1%, briefly falling from above $77,000 to around $76,500, though it remains within its range-bound trading pattern over the past four months. Jeff Ko, Chief Analyst at CoinEx, stated that while geopolitical events may trigger short-term volatility, market focus is likely still centered on potential progress in U.S.-Iran reconciliation, with the broader crypto market “remaining in a wait-and-see mode.” Overall, the Bitcoin market currently faces dual pressures: on one hand, continuous outflows from spot ETFs are weakening critical buying support; on the other, geopolitical uncertainty is amplifying short-term volatility risks. If institutional risk appetite fails to improve marginally, the risk index may rise further, warranting caution against potential corrections driven by a confluence of technical selling pressure and sentiment-driven sell-offs.
Bitcoin Enters High-Risk Zone as Institutional Funds Continue to Withdraw
MarsBitShare
Summary
Bitcoin’s risk-to-reward ratio is worsening as institutional funds continue to withdraw from the market. According to Glassnode, SwissBlock’s report notes that U.S. spot Bitcoin ETFs have experienced nearly daily outflows for over two weeks. This trend is increasing supply pressure with insufficient demand to offset it. Bitcoin fell to $76,500 on Tuesday amid U.S.-Iran tensions but remains in a four-month consolidation range. Analysts suggest the market is in a holding pattern, with risk management strategies growing increasingly critical as uncertainty rises.
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