The post Analysts warn of potential Bitcoin selling pressure from hedge funds appeared on BitcoinEthereumNews.com.

Bitcoin price posted a rare green candle in the last 24 hours. However, crypto researcher Axel Adler suggests Bitcoin selling pressure could grow if hedge funds with short positions on the Chicago Mercantile Exchange (CME) sell the spot Bitcoin ETFs they purchased to hedge those positions. Also read: Bitcoin’s June 2024 – How low can BTC go?  According to Adler, hedge funds might sell these ETF shares to lower Bitcoin prices and profit more from their short positions. However, he noted that the current price of the top crypto asset might prove attractive for institutional traders looking to invest in the sector. Bitcoin experiences significant volatility Over the past week, Bitcoin has faced significant volatility, dropping to a monthly low of $58,649 on June 24. While the digital asset has since rebounded above $61,000, analysts tied its previous decline to strong bearish sentiments pervading the market. Blockchain intelligence platform Santiment reported that the crypto community had shown extreme negativity toward BTC in the weeks before the drop. Also read: BTC miners offload $2 billion in Bitcoin, holdings at 14-year low It added, “This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient.” Negative Crowd Sentiments Toward Bitcoin (Source: Santiment) During this period, BTC also experienced sell-offs from different cohorts of holders, further fuelling the volatility. Notably, a Bitcoin wallet connected to the German authorities moved more than $400 million in BTC to several exchanges, including Coinbase, Bitstamp, and Kraken. The selling pressure further worsened after the US-based spot Bitcoin ETFs embarked on a seven-day outflow streak that ended on June 24, resulting in net outflows of $542 million, according to Crypto.com Research & Insights. However, the trend appears to have turned on June…

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Filed under: News - @ June 26, 2024 12:12 pm