BTC volatility may rise amid ETF outflows and growing shorts, outlet says

Bitcoin price volatility could increase due to continued net outflows from spot ETFs and a concentration of short positions in the derivatives market, The Block reported. Timothy Misir, head of BRN Research, explained that sustained institutional outflows suggest an unstable market structure exposed to various pressures. He noted that as a result, BTC has fallen back below $70,000, and the market structure remains fragile. The Block added that on-chain data shows Bitcoin's Market Value to Realized Value (MVRV) ratio is hovering around 1.1, approaching undervalued territory. The current BTC price is well below the average purchase price for short-term holders ($94,000) and the overall market average ($80,100). In the derivatives market, an asymmetric structure is being observed, with funds concentrated in short positions. The outlet cautioned that a sudden shift in market sentiment could trigger a short squeeze, further increasing volatility.