Bitcoin (Bitcoin) Stocks have been under pressure since spot exchange-traded funds (ETFs) began trading in the U.S. last Thursday. The selling pressure is concentrated on the top crypto exchanges by trading volume, Binance, OKX, and Upbit, according to data tracked by Paris-based Kaiko.
Bitcoin, the top cryptocurrency by market capitalization, is trading at $42,700 at the time of writing, down 12% from Thursday's all-time high of $48,975. The price drop appears to have been caused by traders taking profits on long positions initiated in anticipation of the ETF's debut.
An indicator called Cumulative Volume Delta (CVD) shows that traders on Binance led the so-called “fact sell” decline in Bitcoin. CVD tracks the net difference between purchase and sale volumes over time and provides the total net bullish/bearish pressure in the market. Positive values indicate excessive purchases; negative values indicate otherwise.
Binance’s spot market CVD turned positive last Thursday and has been declining since then, showing capital outflows worth nearly 5,000 BTC, according to data tracked by Kaiko. South Korea's Upbit recorded the second-largest net capital outflow after ITBIT and OKX.
“The ETF began trading last Thursday and saw a strong increase in Cumulative Volume Delta (CVD) on all major exchanges. In the first hour after the market opened in the US, nearly 3,000 BTC net was sold on Binance. “It was bought in the market, but as some feared, this news led to a sell and Binance's CVD quickly went negative, just like OKX,” Kaiko said. Weekly report published on Monday.
“ITBIT, another institutional exchange, also showed consistent selling similar to UPBIT, although its trading volume was low, with stable selling with almost no retrace,” Kaitaka added.
The CVDs of Coinbase and Bitstamp, the custodian partners for most ETFs, remain positive, suggesting net capital inflows even amid price weakness.
According to some analysts, the price could fall further to $40,000 and fall further before the pullback loses momentum. The ETF's initial performance was weaker than expected by Bloomberg analysts. projection There were $4 billion in inflows on the first day alone, underscoring the possibility of further price declines.
