Bitcoin (BTC) is undergoing a significant sell-off driven by institutional investors, with outflows from Bitcoin spot ETFs reaching the third consecutive day. This trend raises concerns, especially considering the recent decision by the Depository Trust & Clearing Corporation (DTCC), a globally renowned financial institution, to not recognize cryptocurrency-based ETFs as collateral for cash loans. This decision adds to the challenges faced by Bitcoin, which struggles to regain its position at pre-halving levels.
In the past weeks, Bitcoin has experienced growing institutional demand through BTC spot ETFs approved in the USA in January. These financial instruments, led by the asset management giant BlackRock with the ticker IBIT, attracted massive capital inflows after approval. Despite reaching a new all-time high of $73,805 on March 14, Bitcoin retraced to $63,000, and today it is trading around $63,800, facing difficulty in recovering ground.
Starting from April 24, Bitcoin spot ETFs listed in the USA have recorded outflows totaling $421.8 million. The continuous inflow of capital into BlackRock's ETF (IBIT) ended after 71 days on April 25.
The recent decision by the DTCC on April 26 further dampened market sentiment, as the institution announced that cryptocurrency-based ETFs would not be recognized as collateral for loans starting from April 30. This decision significantly impacts the liquidity and value of these investment vehicles, as the DTCC and its subsidiary, the DTC, play crucial roles in the US financial infrastructure, providing custody, clearing, and settlement services for securities transactions.
Regarding Bitcoin's price forecast, the current analysis of Bitcoin (BTC/USD) reveals a slight price decline, currently at $63,865.01, with a trading volume in the last 24 hours of approximately $26.74 billion. Bitcoin's market capitalization remains around $1.255 trillion, maintaining its top position on CoinMarketCap.
However, Bitcoin is barely holding above a crucial level of $63,800, and a failure to maintain this threshold suggests possible further declines. Immediate support levels are identified at $62,460, followed by $60,990 and $59,745, while resistance levels are at $65,092, $66,745, and $68,350.
