Bitcoin Market Selloff Hits Recent Buyers Hardest
Bitcoin’s recent price drop has been tough on new buyers. According to Bitfinex analysts, those who bought Bitcoin in the last month have suffered the most. The cryptocurrency has lost 13.5% of its value in the past 30 days. Its also down 29% from its all-time high in January.
Historically, Bitcoin has seen corrections of 30% to 50%. This time,some expected a different outcome due to new institutional adoption through spot BTC exchange-traded funds (ETFs) on Wall Street. U.S. spot BTC ETFs reached over $100 billion in assets under management within a year, thanks to issuers like BlackRock adn Fidelity.
However, cash inflows to these ETFs have slowed recently. Last week, nearly $1 billion exited these products. This indicates that institutional buyers haven’t returned with enough strength to counteract selling pressure.
Short-term Bitcoin holders are also feeling the heat. The Fear & Greed index has dropped to multi-year lows, worsening sell-side pressure. Data from IntoTheBlock shows that 20% of all BTC holders are in unrealized losses.Most of these buyers purchased their Bitcoin between $85,700 and $106,800.
Historically, when fresh capital inflows slow and cost basis trends shift, it signals a weakening demand habitat. Without new buyers stepping in, Bitcoin risks extended consolidation or further downside.
Further price drops may occur as financial markets digest trump’s tariffs and U.S. macro data. Though, Bitfinex analysts beleive a bullish outcome is absolutely possible if long-term holders or institutional demand re-emerge at these lower levels.
