Bitcoin (BTC) dropped sharply to $68,000 on Friday, breaking its recent recovery trend. Despite the selloff, Bloomberg ETF analyst Eric Balchunas noted that institutional outflows have been relatively modest, suggesting investors are holding firm. Year-to-date outflows from Bitcoin ETFs totaled $1.4 billion, a figure Balchunas described as encouraging given the 50% price decline from Bitcoin’s peak of $126,000. He compared the current weakness to gold ETFs’ stagnation before reaching new highs, emphasizing that weak sentiment does not undermine Bitcoin’s long-term adoption.
Crypto commentator Scott Melker highlighted Bitcoin’s breakdown below $75,000, disrupting the pattern of higher highs and higher lows during its recovery. He identified key technical levels to watch, including $75,000 as a former support level, $67,000 as a potential support zone, and the 200-week moving average as a longer-term trend indicator. Melker warned that Bitcoin’s break below its 50-week moving average adds to technical uncertainty but suggested the $67,000 region could attract buyers due to historical trading activity.
Balchunas also noted a shift in investor behavior, with roughly $3.6 billion in recent spot-to-ETF conversions signaling a move from self-custody to regulated investment products. He acknowledged the convenience and institutional oversight offered by ETFs but cautioned that they lack Bitcoin’s censorship resistance and independence. Investors, he advised, should distinguish between Bitcoin’s underlying network and the custodians holding assets on their behalf.