Crypto News

Bitcoin Faces Bearish Trend And Decreased On-Chain Activity; MicroStrategy Continues Accumulation

Bitcoin is experiencing a downturn in exchange-related on-chain activity, indicating decreased investor interest and reduced network usage.

The trend remains bearish, with Bitcoin currently hovering just above a critical demand zone.

Investors are closely monitoring the 61.9k to 63.8k range for potential support.

In line with the reduced on-chain activity, Bitcoin transaction fees have also dropped significantly by 64% this week. This decline further underscores the waning network usage.

Despite the bearish sentiment, MicroStrategy continues its aggressive Bitcoin accumulation strategy. According to on-chain reports from Lookonchain, the company purchased an additional 11,931 BTC, valued at $786 million, between April 27, 2024, and June 19, 2024, at an average price of $65,883 per BTC.

MicroStrategy now holds a total of 226,331 BTC, worth approximately $14.66 billion, with an average buying price of $36,798. At current prices, the company’s profit stands at around $6.33 billion.

Bitcoin ETFs Net Inflow Stays Negative For The 5th Consecutive Days 

In contrast, Bitcoin ETF net inflows have been negative, summing up to -$140 million on June 20, 2024. This marks the fifth consecutive day of negative inflows. Notably, only BlackRock’s IBIT ETF saw a small inflow of $1.5 million yesterday.

Meanwhile, Grayscale’s GBTC ETF experienced the highest outflow of the day at $53 million, contributing to a total outflow of $232 million over the past five days. Fidelity’s FBTC ETF faced an even larger outflow, totaling $413 million in the same period.

The current market dynamics reflect a mixed sentiment, with institutional players like MicroStrategy continuing to invest heavily in Bitcoin, while ETF flows indicate a broader hesitation among other investors.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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