Bitcoin briefly dropped below $75,000 on Wednesday, touching a low of $74,600, continuing its pullback from recent highs. Ongoing outflows from spot ETFs and persistent geopolitical and macroeconomic pressures have weighed on the market in the short term.
Continuous outflows from ETFs are pressuring prices.
At the beginning of this week, Bitcoin briefly approached $78,000, but later gave up those gains. As the market pulled back, U.S. spot Bitcoin ETFs continued to experience outflows.
According to SoSoValue data, Bitcoin spot ETFs experienced a net outflow of $334 million on May 26, marking the seventh consecutive trading day of net redemptions. The sustained outflows are weakening the price support provided by spot buying demand.
As of press time, Bitcoin is trading at approximately $75,175, down 1.29% over the past 24 hours and nearly 3% over the past week.
Buy orders remain in the $72,000 to $76,000 range.
Market participants say this round of decline has remained relatively orderly, with volatility less severe than in previous sharp drops. Liquidity is currently concentrated between $72,000 and $76,000, with buying interest still absorbing the intraday pullbacks.
However, continued outflows from ETFs, combined with profit-taking following the earlier rally, have kept the short-term trend weak. Some analysts view $74,500 as a key level ahead.
On-chain analyst Axel Adler Jr. said that Bitcoin took five weeks to rebuild its price structure but only three weeks to give back that recovery. Meanwhile, short-term holder flows have turned to loss-taking for the first time in six weeks.
Sentiment is improving, but new funds are insufficient.
CryptoQuant analysts believe that a current issue in the market is that bullish sentiment has recovered, but new capital has not entered in tandem. This means that position sentiment has become more optimistic, yet broader capital participation is lacking.
The analyst stated that such situations often occur in the later stages of speculation, and when prices are supported by weak capital inflows, they are more prone to rapid pullbacks.
Bitfinex analysts noted that the impact of this round of ETF outflows on prices has been less pronounced than the decline seen in February this year. Although the daily outflow volume is close to that level, Bitcoin’s price has remained stable within its current range, indicating that buying demand still exists in the market.
Currently, Bitcoin is in a phase of directional selection. If buying pressure regains control, the market may retest the previous range of $78,000 to $83,000; if support is broken, the risk of a pullback toward $70,000 will continue to rise.