Bitcoin (BTC) has been under pressure since exchange-traded funds (ETF) began trading in the US last Thursday. Data tracked by Paris-based Kaiko shows that selling pressure was focused on Binance, the leading cryptocurrency exchange by trading volume, OKX, and Upbit.
Bitcoin, the leading cryptocurrency by market cap, was trading at $42,700 at press time, representing a 12% decline from the high of $48,975 reached on Thursday. The price decline appears to have arisen from traders taking profits from long (long) positions initiated in anticipation of the debut of ETFs.
An indicator called Cumulative Volume Delta (CVD) shows that Binance traders led the so-called “truth selling” pullback in Bitcoin. CVD tracks the net difference between buy and sell volumes over time, providing an aggregate of net bullish/bearish pressures in the market. Positive values indicate excess purchase volume, while negative values indicate otherwise.
The CVD of Binance’s spot market turned positive last Thursday and has been declining since then, representing a capital inflow equivalent to nearly 5,000 BTC, according to data tracked by Kaiko. South Korea’s Upbit saw the second-largest net capital outflow, followed by Itbit and OKX.
“ETF trading began last Thursday, with a strong rise in cumulative delta volume (CVD) across all major exchanges; a net of nearly 3,000 BTC were purchased from the market on Binance in the hour surrounding the US market open. However, As some had feared, news of the sell-off took hold, and Binance’s CVD value quickly dropped into negative territory, as happened with OKX, a weekly report published on Monday.
“Itbit, another institutional exchange, showed steady selling, despite its low trading volumes, along with Upbit, which showed steady selling with few bounces,” Kaiko added.
CVD on Coinbase, a custodial partner for most ETFs, and Bitstamp, remained positive, indicating a net capital outflow amid weak prices.
According to some analysts, prices could fall further to $40,000 or less before the decline runs out. The ETFs’ initial performance was weak compared to Bloomberg analysts’ expectations. prediction Of inflows reached $4 billion on the first day alone, which supports the argument for a deeper price decline.