10x Research: The main reason for Bitcoin's decline is inflation data, not Strategy selling off

Deep Tide TechFlow news, on June 8, according to CoinDesk, 10x Research founder Markus Thielen said the main reason Bitcoin recently fell below $60,000 was that institutions massively sold through spot ETFs, rather than the market generally attributing it to Strategy’s Bitcoin-selling behavior. Since the U.S. released April CPI data (above expectations) on May 12, U.S.-listed Bitcoin ETFs have recorded cumulative net redemptions of about $5.4 billion; in the same period, Strategy instead increased its Bitcoin holdings by about $2.0 billion, making it one of the few major buyers in the market.

Thielen warned that if the May CPI data to be released this Wednesday exceeds 4% (10x Research forecasts 4.3%, higher than the market expectation of 4.2%), Bitcoin’s short-term rebound may be difficult to sustain, and further Fed rate-hike expectations will continue to weigh on risk assets. In addition, stablecoins saw a net outflow of about $1.7 billion last week and a total outflow of $5.5 billion so far this month, showing that capital continues to flow out of the crypto market overall. Thielen emphasized: “It’s institutional ETF fund flows that are the core driver of price—follow the money, not the narrative.”