Bitcoin Market Faces Intense Selling Pressure

In recent weeks, significant selling pressure has impacted Bitcoin, driven by a combination of long-term holders, early miners, and ETF managers liquidating their positions. Long-term holders have sold $1.2 billion worth of Bitcoin in the last two weeks, adding market pressure. Early miners have also realized $550 million in profits this year, contributing to the downward trend. This activity is linked to the recent Bitcoin halving, which has caused weaker miners to exit the market, resulting in a temporary increase in BTC being sold.
Additionally, Bitcoin ETFs have experienced persistent negative net flows, with a notable outflow of $152 million on June 18, 2024, marking the fourth consecutive day of net outflows totaling $714 million. This has further fueled bearish sentiment, particularly with significant outflows from major players like Grayscale and Fidelity.
Moreover, despite increased transaction activity earlier this year due to excitement around ordinals and Runes, the number of new Bitcoin users has dropped to multi-year lows, even below levels seen during the 2018 bear market. This lack of retail investor growth raises questions about the sustainability of current market dynamics.
On-chain analyst Willy Woo suggests that a clearing of open interest in futures markets is needed before a bullish trend can resume. While media sentiment remains optimistic, the substantial sell-offs and persistent negative ETF netflows may indicate a prolonged corrective period for Bitcoin.