Bitcoin’s price appears poised to test levels below $30,000 amid a significant surge in institutional selling. Data from Capriole Investments reveals that large holders are selling around 450% of the daily newly mined Bitcoin supply, translating to nearly 2,000 BTC being offloaded each day. This heavy selling pressure from institutions threatens the cryptocurrency’s recent recovery momentum.
A major factor contributing to the downward pressure comes from spot Bitcoin ETFs, which have seen substantial outflows that now overshadow other sources of demand. Over the past month, these funds experienced withdrawals approaching $27 billion, according to analytics firm Glassnode. This reversal marks a stark shift from previous years, where ETF inflows notably boosted Bitcoin’s price toward record highs.
Corporate demand, once considered a stabilizing influence, is showing signs of fatigue. Strategy, a corporate treasury investor, drove significant accumulation earlier this year by purchasing tens of thousands of BTC, supporting Bitcoin’s rebound from a previous low near $60,000. However, Strategy’s recent buying has sharply slowed to modest net purchases, insufficient to counterbalance the ongoing ETF-led selling pressure. This downturn in institutional appetite exacerbates the risk of further price declines.
Analysts are forecasting extended downside risks. CryptoBullet, an industry observer, points out that Bitcoin’s current slump resembles earlier drops of up to 39%, suggesting a near-term support range between $49,000 and $53,000. Nevertheless, Fibonacci retracement analysis indicates Bitcoin’s bear markets deeply breach traditional support levels before stabilizing. Historical patterns show BTC falling significantly below the 0.618 retracement level—currently near $57,000—before finding a bottom. This insight implies the $30,000 threshold is a plausible next target if current trends persist.