Key takeaways:
-
Over $342.2 million in ETF outflows on Tuesday and weaker futures activity show traders becoming more defensive.
-
Bitcoin traders are watching $106,500 support and significant resistance at $109,000.
Bitcoin (BTC) remains stuck in a $4,000 range as muted market activity and the return of spot BTC ETF outflows suggest that traders are now switching to a more defensive approach.
US Bitcoin ETFs snap 15-day inflow streak
Over $4.7 billion flowed into US-based spot Bitcoin exchange-traded funds (ETFs) between June 9 and Monday, according to data from SoSoValue.
However, investors stopped the inflows by withdrawing $342.2 million on Tuesday as the Bitcoin price hovered around $106,000.
The outflows were from four funds, namely Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust ETF (GBTC), ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), which saw $172.7 million, $119.5 million, $27 million and $23 million in outflows, respectively.
Related: Bitcoin profit-taking makes $140K key BTC price point: Research
Meanwhile, leveraged ETFs have seen modest activity throughout the week, with back-to-back days of minor outflows since Thursday. Lately, no material flows have been seen in leveraged instruments, indicative of the low-risk bias among investors.
Together with negative ETF flows, “limited leveraged ETF flows signal low leverage and modest yields,” K33 Research said in its latest Ahead of the Curve report, adding:
“These suggest limited immediate risk of leveraged-driven market squeezes.”
Muted crypto futures activity
Crypto futures market activity remained muted over the past week, with BTC Binance futures annualized premiums dropping to a 21-month low of 3.9% on Tuesday, Glassnode data shows.
K33 Research also points out that there has been no substantial change in CME’s crypto futures over the past week. Annualized BTC CME futures premiums dropped to an 8-day low of 6.5% on Monday, reflecting reduced institutional interest or confidence in a near-term Bitcoin price surge.
This “reflects traders’ defensive stance” and a “sustained reluctance to take on new long positions, which has kept perps trading below spot,” K33 Research explained.
Bitcoin’s open interest also declined by…
Click Here to Read the Full Original Article at Cointelegraph.com News…