Bitcoin ETF Investors Pull Nearly $3 Billion, Pushing Average Buy Below Water
Bitcoin slid hard over the weekend and stayed low into Monday, leaving traders on edge and pushing many to reduce risk.
Policy, Politics, And Market Mood
Market watchers point to extra uncertainty around monetary policy and geopolitics as fuel for the recent moves. Reports have disclosed that the proposed US Clarity Act stalled in Washington.
At the same time, headlines about tensions in the Middle East and trade friction added to a rush for traditional safe havens like gold and the dollar.
Even a hint of policy change matters: US President Donald Trump’s choice for the next Fed chair was discussed by investors as another factor shaping expectations.
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Liquidity And The Road Ahead
Institutional holders have not all capitulated. Many have been described as holding on, which can cushion sharp drops.
But when the average cost basis for major ETF holders is above the current market price, confidence can be fragile.
Liquidity has thinned in certain windows, and that makes price swings larger. A recovery requires renewed buying from both retail and big investors, otherwise sellers may dictate direction for longer.
Featured image from Unsplash, chart from TradingView
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