Cryptocurrency Market Faces Selling Pressure: Outflow of Spot ETFs, Decrease in Mining Reserves, Government Agencies Selling

Bitcoin has been dropping steadily since reaching $71,754 on June 5th, with selling pressure in the crypto market coming from factors such as spot ETFs, Bitcoin reserves from mining companies, and even Bitcoin sales from government seizures.

Billions of dollars have been flowing out day after day! BTC at 62K, meme coins all declining, cryptocurrency market enters a general decline.

ETF Outflows for Six Consecutive Days

According to data compiled by Bitcoin.com, Bitcoin has dropped from $67,301 to $62,913 over the past week, with spot ETFs experiencing net outflows for six consecutive days.

The total outflow over the six days amounts to $960.2 million, which is over 15,000 BTC. Currently, the total assets under management for 11 Bitcoin spot ETFs are approximately $55.55 billion.

Mining Companies Continue Selling Bitcoin

The Bitcoin reserves of mining companies have also decreased. Between June 20th and June 22nd, mining company reserves decreased by approximately 1,125 BTC. The expected earnings per second for mining power currently remains above $50, indicating increased costs for miners, especially in equipment, electricity, and other operational expenses.

CoinShares Report: Post Bitcoin Halving, Mining Company Cost Price at $37,800, Only 5 Mining Companies Are Profitable

Government Abandons Bitcoin Auctions, Turns to Exchanges for Selling

In addition, German authorities transferred around $200 million worth of Bitcoin from wallets last week. The fund transfer involved exchanges such as Coinbase, Kraken, and Bitstamp, indicating that some assets have been sold, while they still hold 47,179 BTC.

Blockchain Institution Arkham: German Government Sells Nearly $200 Million in BTC, Still Holds 47,000 Coins

Bitcoin.com points out that governments worldwide seem to be abandoning auction formats to sell confiscated Bitcoin, with countries like the U.S. opting to directly sell on mainstream exchanges.

According to the Bitcoin holdings platform BitcoinTreasuries, the U.S. government holds 217,486 BTC, valued at $13.9 billion, ranking first globally, along with 53,900 ETH valued at $187 million.

Following the U.S. is China with 190,000 BTC, the UK with 61,245 BTC, and Germany with 47,179 BTC. In total, the Bitcoin holdings of governments worldwide have reached 2.7% of the total supply.