Crypto
Bitcoin Rally Lacks Sustainable Foundation Amid Institutional Selling Pressure
The recent Bitcoin price surge has left many wondering if it's sustainable. According to analysts, institutional selling pressure is at odds with retail momentum, suggesting that the current rally lacks a solid foundation.
The Coinbase premium gap, which measures the difference between Bitcoin prices on Coinbase and global order books, hit -0.0983% on May 21. This indicates intense institutional selling pressure, with professionals dumping assets more aggressively than retail buyers.
Nick Ruck, research director at LVRG, attributes this decline to net selling pressure from large holders taking profits or repositioning. Meanwhile, US spot Bitcoin ETFs saw $1.3 billion in outflows over four trading days since May 14.