CoinShares: Bitcoin still faces threefold pressure, and the market is in a fragile bottoming-out phase

According to James Butterfill, Research Director at CoinShares, the largest European digital-asset asset manager, in his latest report, Bitcoin is still facing threefold pressure: the Federal Reserve’s hawkish stance, intensifying geopolitical risks from Iran, and stalled progress on the U.S. “CLARITY Act.” However, he believes that while the market is under strain, there has not been any structural deterioration yet; it is more like a “fragile bottoming phase” rather than the start of a new uptrend.

Butterfill noted that Bitcoin spot ETFs have seen total net outflows of about $8 billion over the past eight weeks, setting the longest-ever outflow record in history, but recent fund flows have shown signs of stabilizing. At the same time, he believes concerns about the risk of Strategy selling coins have clearly decreased; the real impact comes from the “never sell coins” narrative being broken, rather than the actual magnitude of selling.