BTC drop due to ETF outflows, high rate fears, says Bitfinex

The recent decline in BTC's price is the result of a combination of factors, including large-scale outflows from spot ETFs, deleveraging in the derivatives market, and concerns over prolonged high interest rates, Bitfinex noted in a new report. The firm's analysis stated, "The spot Bitcoin Cumulative Volume Delta (CVD) has deteriorated sharply since the accumulation phase in April and May, and the average acquisition price for short-term holders (STH) has fallen below the True Market Mean of $77,800." This indicates that a significant number of recent investors are now at a loss. The macroeconomic environment has also become a headwind. With the U.S. 10-year Treasury yield exceeding 4.45%, rising real interest rates are putting pressure on risk assets across the board. When real rates rise, the cost of holding non-yielding assets increases. Bitfinex added that both digital assets, including BTC, and traditional assets are currently being influenced by these trends in real interest rates.