Bitcoin has fallen to levels close to $72,000, amid increasing pressure from continued outflows from spot exchange-traded funds (ETFs), and growing concerns related to geopolitical developments and rising energy prices.
According to market data, Bitcoin traded near $72,700 during Monday's trading, after temporarily dropping to $72,600, marking a decline of about 1.5% over the past 24 hours and 6% over the last week, while it has fallen by about 10% compared to its highest levels recorded in May at around $81,000.
Data from the SoSoValue platform showed that Bitcoin spot funds exchange-traded funds (ETFs) recorded net outflows of $1.42 billion last week, bringing total withdrawals since the beginning of May to more than $2.4 billion, an indication of declining institutional demand, which had been one of the most prominent factors supporting prices during the past period.
Continued redemptions have reduced buying power in the market, with fund issuers forced to sell part of their Bitcoin holdings to meet withdrawal requests, further putting pressure on the currency in a cautious trading environment.
At the same time, renewed geopolitical tensions between the United States and Iran have contributed to increased uncertainty among investors, coinciding with oil prices rising above $90 a barrel, which has raised concerns about continued inflationary pressures and their impact on the course of US monetary policy.
Analysts believe that the $72,000 level represents an important technical support zone for Bitcoin, warning that breaking this level could lead to a wider range of declines, while the currency's success in maintaining it could help to regain some momentum and stabilize prices in the coming period.
