This month, Bitcoin’s tepid price action has sparked a wave of negativity among institutional investors, raising the possibility of the digital asset closing September in the negative.
Additionally, on-chain data shows a decrease in miner accumulation, further burdening the already struggling cryptocurrency.
ETF Exodus and Miner Selling Could Push Bitcoin Lower
The ongoing liquidity outflow from spot BTC exchange-traded funds (ETFs) illustrates a diminishing interest from institutions. As reported by Sosovalue, the capital withdrawal from these funds between September 22 and 26 amounted to $903 million, indicating a market retreat.
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The historical correlation between ETF flows and BTC’s price has been robust. In July, the coin surged above $120,000, fueled by monthly ETF inflows exceeding $5 billion. The current outflows create a stark contrast, hinting that institutional interest from earlier in the year may be waning. This trend could place the leading cryptocurrency at risk of further declines if institutional capital continues to exit.
Moreover, on-chain data indicates a drop in miner reserves, suggesting that miners are selling rather than accumulating BTC, contributing to the coin’s bearish outlook. According to CryptoQuant, miner reserves currently hold 1.8 million BTC and have declined by 0.24% since September 9.
Miner reserves represent the total amount of BTC held in miners’ wallets before being sold on the market. A decline in these reserves indicates that miners are liquidating their holdings to secure profits or cover costs.
This activity often increases the coin’s supply in the market, exerting additional downward pressure on BTC’s price.
Heavy Selling Could Trigger Fresh Lows
If spot BTC ETFs persist in seeing outflows and miners continue to sell, the coin’s price may extend its downturn, potentially heading toward $107,557.
Conversely, if demand surges and market sentiment improves, BTC’s price could exceed $110,034 and rally toward $111,961.
