Even so, Whale wallets and retail traders increased Bitcoin accumulation despite heavy ETF selling
A crypto analyst is sounding the alarm that Bitcoin (BTC) is currently executing one of the most painful patterns in its entire market history.
Spot Bitcoin ETFs extended their redemption streak on May 28, with another $229 million leaving the products as outflows across crypto-linked exchange-traded funds deepened. Spot Ethereum ETFs also remained under pressure, recording $121 million in net outflows and pushing their own withdrawal run to 13 consecutive trading days.
Texas will transfer its strategic bitcoin reserve out of BlackRock's IBIT ETF to switch to direct on-chain custody. The state issued an official tender on May 7 to recruit an institutional custodian capable of executing this switch within 60 days.
Sentora's supervised loan strategy powers BTC yield without directional risk or recursive leverage.
Texas' Bitcoin reserve initiative could influence energy policy and regulatory frameworks, potentially setting a precedent for other states. Texas forms Strategic Bitcoin Reserve Advisory Committee, appoints CleanSpark executive.
Institutional Bitcoin ownership could centralize control, impacting market dynamics and potentially influencing regulatory and financial strategies. Institutions now hold 18.5% of all Bitcoin that will ever exist.
Bitcoin still trades near its all-time highs. However, several on-chain indicators tracked by CryptoQuant signal a weakening of the accumulation dynamic among the main categories of investors.
Bitcoin (CRYPTO: BTC) whale accumulation is contracting at the fastest pace this year as CryptoQuant warns the setup mirrors March 2022 bear market conditions. Whale Balances Shrinking While Dolphin Growth Stalls Whale balances—wallets holding 1,000 to 10,000 Bitcoin—are shrinking year-over-year at the steepest rate of this cycle, matching the 2022 bear phase when accumulation first stalled before turning negative.
Bitcoin has clawed back losses to trade near $74,000 after President Donald Trump abruptly announced an end to the U.S. naval blockade of the Strait of Hormuz, easing weeks of geopolitical pressure on crypto and oil markets.
Institutional rebalancing amid rising inflation and interest rates highlights Bitcoin ETFs' vulnerability to macroeconomic shifts. US Bitcoin ETFs see $2.8B in outflows during record nine-day streak.
The potential Iran deal could stabilize geopolitical tensions, impacting global trade and energy markets while influencing cryptocurrency trends. Trump heads to Situation Room for final decision on Iran deal as Bitcoin holds near $78K.