Bitcoin (BTC) temporarily collapses to $60,000... Is it due to US smart money adopting a wait-and-see approach?

▲ Bitcoin (BTC), Gold

An analysis suggests that the backdrop to Bitcoin (BTC) falling from around $83,000 to the $60,000 level in six weeks is the wait-and-see approach adopted by US institutional funds.

According to cryptocurrency specialized media CryptoPotato on June 25 (local time), Bitcoin reclaimed the $80,000 mark six weeks ago and rose to a multi-month high near $83,000. At the time, there were even predictions of a breakthrough to $100,000 before summer, but the trend sharply reversed afterward.

Bitcoin fell below $60,000 during the day, marking the second time it surrendered that level in June. As a drop of around $23,000 occurred in a short period during a phase where market sentiment was reviving, investors are focusing on changes in supply and demand rather than a simple correction.

Popular analyst Ali Martinez pointed to the Coinbase Premium as a key indicator. This metric, which shows the price difference between Bitcoin on Coinbase and Binance, is used to gauge the buying intensity of US investors, especially institutions. Martinez stated, “A negative premium means Bitcoin is trading at a cheaper price on Coinbase, suggesting that US institutional buying pressure has dried up.”

According to Martinez, the Coinbase Premium has not shown a recovery to positive territory for the past 46 days. He saw this slowdown as similar to the large-scale capital outflow observed from US Bitcoin spot ETFs. Approximately $5 billion flowed out of these funds during the same period, and Martinez said, “US smart money appears to be waiting for macroeconomic clarity before re-entering the accumulation phase, adopting a wait-and-see approach.”

CryptoPotato also cited uncertainty surrounding the Iran war, a strong dollar, and the potential selling by early long-term investors as other factors for Bitcoin's decline. Additionally, concerns surrounding Strategy and Stretch shares were identified as a burden. STRC fell below its par value of $100 to $80, and the explanation is that the pressure has increased due to a structure where the company has to bear higher yields. Some analysts believed that this trend could lead to a large-scale Bitcoin sell-off by Strategy.

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