Bitcoin Price Declines Below $93K as Institutional Cash Outflows Continue
Bitcoin price #BTC experienced bearish sentiment on December 30, 2024, dropping below a crucial support level of approximately $93K. The cryptocurrency has been in correction mode since reaching around $100K earlier this month; however, investor confidence remains for a bullish recovery in 2025 driven by institutional adoption.
Franklin Templeton predicts a shift in the cryptocurrency industry from speculation to utility-focused activities in 2025. This transition is supported by clearer regulatory frameworks, institutional adoption, and advancements in AI-crypto convergence, making cryptocurrencies integral to the global financial system.
Institutional Moves on Bitcoin at the End of 2024
Demand for Bitcoin from institutional investors fluctuated recently. US spot Bitcoin ETFs reported over $800 million in net cash outflow in two weeks, including a significant outflow of about $426 million on December 30, with no issuers showing net inflows. BlackRock’s IBIT had a net outflow of about $36.52 million, Grayscale’s GBTC saw an outflow of about $134 million, and Fidelity’s FBTC reported a net outflow of about $154 million.
Despite these outflows, the US spot Bitcoin ETF market is projected to close 2024 with total net assets exceeding $106 billion, marking it as the best-performing ETF in its debut year.
MicroStrategy Inc (NASDAQ: MSTR) continued its weekly Bitcoin purchases, investing around $209 million between December 23 and December 29, bringing its total holdings to approximately 446,400 Bitcoins, representing over 2 percent of the total supply.
What Next?
On-chain data analysis from CryptoQuant indicates that Bitcoin may continue its bearish correction, potentially finding support around $80K where selling pressure may decrease. The recent drop below the $93K support level suggests further selloff potential.
Technical analysis shows that Bitcoin has formed a bearish reversal pattern over the past weeks. It closed below the 50-day Moving Average in the last five days, with a head and shoulders (H&S) pattern and bearish divergence on the Relative Strength Index (RSI) indicating continued bearish sentiment.
However, crypto analyst Ali Martinez believes the macro Bitcoin bull run is not finished, noting that a bear market typically begins when the monthly RSI reaches 92, while it currently hovers around 75%.