Bitcoin has entered a high-risk zone, and the continuous withdrawal of institutional funds highlights concerns about selling pressure

The latest report from the blockchain analysis platform Swissblock shows that Bitcoin is gradually slipping into a high-risk environment, primarily due to continuous selling by institutional funds, especially driven by net outflows from the U.S. spot Bitcoin ETF. Historical data indicates that whenever this index signals selling pressure overwhelming the market at a structural level, it often corresponds to systematic distribution behavior by institutional funds.

On-chain data analysis firm Glassnode also pointed out that since May 7, the U.S. Bitcoin spot ETF has shown net outflows almost every trading day, with institutional selling signals persisting for over two weeks. "Such continuous capital outflows are exerting pressure on the supply side of the market, while currently, there has not been sufficient buying demand to hedge against this," further exacerbating the risk of supply-demand imbalance.

In the market, Bitcoin faced short-term pressure on Tuesday due to geopolitical disturbances. Reports indicated that the U.S. is implementing a new round of military strikes against Iran, despite recent progress on a peace agreement between the two sides. Bitcoin's price fell by about 1%, briefly dipping from above $77,000 to around $76,500, but overall it still maintained a range-bound pattern for nearly four months.

CoinEx Chief Analyst Jeff Ko stated that although geopolitical events may trigger short-term volatility, the market focus may still lean towards potential reconciliation progress between the U.S. and Iran, with the overall cryptocurrency market "still in a wait-and-see state." In summary, the current Bitcoin market faces dual pressures: on one hand, the continuous outflow of spot ETF funds has weakened key buying support; on the other hand, geopolitical uncertainty has amplified short-term volatility risks. If institutional risk appetite does not improve marginally, the risk index may rise further, necessitating caution against the adjustment pressure brought by technical selling and emotional resonance.