Bitcoin has declined below $68,000 on March 7, as outflows from spot Exchange-Traded Funds (ETFs) have increased selling pressure on the cryptocurrency market. The asset is currently priced around $67,791, losing 4.22% over the last 24 hours, as reported by TradingView market data.
Despite losing value, Bitcoin is still leading the pack in the crypto market with a market capitalization of $1.36 trillion and 58.5% market dominance. The asset is also witnessing significant trading volumes, with $50.79 billion being traded in the last 24 hours.
Major Liquidations Possible If Bitcoin Falls Further
According to a recent post by on-chain analyst Ali Martinez, a deeper correction could trigger major liquidations. He noted that if Bitcoin drops to $54,000, more than $70 million in long positions could be forced to close automatically. Such liquidations typically accelerate downward price movement as leveraged positions are removed from the market.
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Bitcoin Spot ETFs See $349 million Capital Outflows
On the other hand, investment flows also saw a change. There was a total of $349 million in net outflows from Bitcoin spot ETFs, reflecting significant capital moving out of these funds. The largest single-day outflows came from the Fidelity Wise Origin Bitcoin Fund, with a capital outflow of $159 million from this investment product within a single session.
As a result of these outflows, the cumulative historical net outflows from FBTC investment products are now at about $153 million.
These outflows indicate that there was a time of declining demand for these investment products. Large outflows from investment products like ETFs are known to affect the price of Bitcoin in the short term, especially due to their impact on capital inflows into or out of the cryptocurrency market.
There was also a similar trend observed from Ethereum investment products. There was a total of $82.85 million in net outflows from Ethereum spot ETFs. The largest single-day outflows came from the Fidelity Ethereum Fund, with a capital outflow of $67.57 million from this investment product within a single session.
Data indicate that the cumulative historical net outflows from FETH investment products are now at about $218 million. These investment products saw declining institutional investment in recent sessions.
Market analysts believe that these investment product outflows, as well as liquidation risks, may affect the price of Bitcoin in the near term. Although the price of BTC is still far above earlier yearly prices, analysts are of the opinion that a lot of attention should be paid to whether the price of Bitcoin can hold above the $65,000 and $60,000 mark.
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