Why Did Bitcoin Crash? On-Chain Data Points To One Missing Ingredient
Bitcoin tests $62K as ETF outflows and weak institutional demand erase $40B from Realized Cap. Has the market simply run out of buyers?
➤ Bitcoin's price decline is attributed to a significant withdrawal of institutional demand, primarily from US spot Bitcoin ETFs, leading to a $40 billion reduction in Realized Cap. ➤ Capital has rotated from Bitcoin into US equities, particularly AI-related companies, due to their strong earnings growth and compelling near-term catalysts in the current interest rate environment. ➤ While the market structure has deteriorated with expanding selling volume, long-term holders remain intact, suggesting this correction is demand-driven rather than a panic-driven sell-off, with recovery contingent on ETF flows and Realized Cap growth.