Bitcoin has entered a high-risk zone, and the continued withdrawal of institutional funds highlights hidden concerns about selling pressure

Comparing news, blockchain analysis platform Swissblock's latest report shows that Bitcoin is gradually slipping into a high-risk environment, mainly due to continued sell-off of institutional capital, particularly the net outflow of US spot Bitcoin ETFs as the main driver. Historical data shows that every time the index suggests that selling pressure overwhelms the market at a structural level, it often corresponds to the systematic distribution of institutional funds behind it.

On-chain data analysis agency Glassnode simultaneously pointed out that since May 7, the US Bitcoin spot ETF has shown a net outflow trend on almost every trading day, and the institutional sell-off signal has continued for more than two weeks. “This continuous outflow of capital continues to put pressure on the supply side of the market, and no sufficient buying demand has been observed to hedge against it”, further exacerbating the risk of an imbalance between supply and demand.

At the market level, Bitcoin was under short-term pressure due to geopolitical disturbances on Tuesday. There are reports that the US is carrying out a new round of military attacks on Iran, even though the two sides have recently made progress on a peace agreement. The price of Bitcoin fell by about 1% in response, briefly falling from above $77,000 to around $76,500, but the overall pattern of range-bound fluctuation has continued for nearly four months.

CoinEx chief analyst Jeff Ko said that although geographical events may cause short-term fluctuations, the market focus may still tend to focus on the progress of a potential settlement between the US and Iran, and the overall crypto market “remains on the sidelines.” Taken together, the Bitcoin market is currently facing double pressure. On the one hand, the continued outflow of funds from spot ETFs has weakened key buying support; on the other hand, geopolitical uncertainty has amplified the risk of short-term fluctuations. If institutional risk appetite does not improve marginally, and the risk index may rise further, we need to be wary of adjustment pressure brought about by technical sell-off and emotional resonance.