Bitcoin (CRYPTO: BTC) price dropped below the important support of $75,000 before paring some of those losses. The coin is facing numerous risks, including the rising ETF outflows, weak technicals, and the rising odds that the Federal Reserve will hike interest rates this year.
Bitcoin Price Is Facing Major Headwinds
BTC, the biggest cryptocurrency, is facing some major risks. A crucial one is the fact that smart money investors are actively selling their holdings. Data shows that spot Bitcoin ETFs, led by the iShares Bitcoin ETF (NASDAQ:IBIT) had $105 million in outflows on Friday. IBIT and Fidelity’s FBTC lost $68 million and $36 million, respectively.
Spot Bitcoin ETFs had over $1.2 billion in outflows this week, higher than the $1 billion they lost a week earlier. These outflows have now erased the $1.6 billion that the funds experienced in the first six trading days of this month.
The ongoing Bitcoin ETF outflows is a sign that institutional and smart money investors are sceptical about it having more gains in the near term.
