Bitcoin Panic Selling Near End as ETF Inflows Return
CoinDesk cited market data suggesting Bitcoin’s panic selling may be nearing an end. The first signal is price resilience: even with heightened geopolitical risk and a jump in crude oil prices, BTC held around $62,000 over the weekend, unlike the sharper declines seen in March and April. Wintermute trader Jasper De Maere said “weak hands have mostly exited.”
The second signal is spot ETF flows. In the U.S., spot Bitcoin ETFs saw net inflows of about $197 million last week, ending eight straight weeks of outflows. De Maere noted that this is not yet a trend reversal, but marginal sell pressure appears to be drying up.
Additional sell-side data from Nexo analyst Dessislava Ianeva showed average daily net BTC sales near 2,000 in June, but only 53 in July so far (excluding April), indicating a notably calmer month for selling.
However, FxPro chief analyst Alex Kuptsikevich warned the rebound is largely driven by derivatives positioning, while the spot market still looks soft. Without stronger spot buy-side liquidity, BTC could remain range-bound for months. Key catalysts this week include U.S. CPI and remarks/testimony tied to the Federal Reserve chair Warsh’s first congressional testimony.
Neutral
The article argues that Bitcoin’s panic selling may be close to ending, supported by (1) BTC price resilience around $62,000 and (2) a rebound in U.S. spot Bitcoin ETF inflows (~$197M), alongside sharply lower net BTC sales (Nexo: June ~2,000/day vs July ~53/day). These factors typically reduce the probability of further forced liquidation cascades—often the driver of bearish “panic selling” phases.
However, the same report stresses that the current rebound is derivatives-led, while spot demand remains weak. This mirrors past cycles where ETF inflow improvement can halt sell-pressure, yet price still chops in a range until sustained spot buying confirms. Traders should expect:
- Short term: volatility could remain elevated around macro catalysts (U.S. CPI, Fed-related testimony). If spot inflows continue, the market can transition from “capitulation” to “base building.”
- Long term: a true bullish shift likely requires follow-through in spot ETF net flows and broader spot liquidity, not just futures/derivatives positioning.
Overall, signs point to diminishing panic selling, but confirmation is incomplete—hence a neutral read on market stability.