Bitcoin News: The key accelerator of the 2021 crypto market bull run seems to be running out as institutional demand for Bitcoin-related investment products slows. Research by crypto analytics firm Glassnode reveals that while the Bitcoin market continues to struggle for support, mining selling pressure has increased and institutional demand has remained slow. The report noted that one of the biggest factors in the institutional narrative is the one-way flow of crypto assets into Grayscale’s GBTC trust fund. Investors tried to arbitrage the high premium observed in 2020 and early 2021.
Bitcoin held its support this week, absorbing another capitulation and possibly sell-side pressure from miners. According to the analysis report published by Glassnode, two main factors triggered the recent jump in selling pressure from Bitcoin miners. First, a dramatic drop in mining revenue. Second, a sharp increase in logistical expenses incurred by Bitcoin miners during relocation.
Glassnode also observed exits from two major Canadian BTC funds and a clear change in coin balances held on Coinbase, concluding:
“The outlook for GBTC premium, net outflows from combined Purpose and QBTC ETFs, and a sluggish Coinbase balance continues, while institutional demand looks somewhat sluggish.”
ETH outputs hit record highs
A related report by institutional asset manager CoinShares reported that Bitcoin outflows have actually slowed over the past week. Total Bitcoin outflows across all funds fell to just $1.3 million, down from $89 million the previous week. The report noted that some funds, such as Grayscale, are actually seeing small BTC inflows, creating mixed sentiment for Bitcoin among investors.
A record $50 million increase after $1.9 million in ETH-based investment products the previous week. The massive market slump that began in mid-May and reduced 43.5% of the total market cap resulted in massive outflows from all digital asset investment products.
Bitcoin, ETH Price Outlook: At the time of writing, Bitcoin was trading marginally at $34,750 on the day, according to CoinGecko. It bounced off the $30,000 support over the weekend and put analysts back in upbeat mode, but failed to make any significant headway above current levels. Ethereum is doing much better today, with a 7% increase to $2,115.