Key points to remember:
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BTC failed to hold $70,000 despite strong ETF inflows as sales from public miners offset recent institutional buying.
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Options markets reflect strong demand for downside protection, with a 17% put premium signaling cautious sentiment.
Bitcoin (BTC) failed to hold Monday’s $70,000 level despite $471 million in net inflows into U.S.-listed cash exchange-traded funds (ETFs). The market’s initial enthusiasm faded following reports that several US and Israeli aircraft and equipment were destroyed in a military operation in Iran over the weekend.
Given that the S&P 500 remained relatively stable between Friday and Tuesday, Bitcoin’s inability to maintain bullish momentum likely stems from other factors.
U.S.-listed Bitcoin ETFs saw $471 million in net inflows on Monday, the highest in more than five weeks; however, the trend of the previous two weeks remained subdued, indicating a lack of conviction. Part of traders’ concerns stem from recent sales of Bitcoin by publicly traded miners.
Bitcoin mining and digital asset treasury companies put BTC under pressure
MARA Holdings (MARA US) reportedly transferred 250 BTC on Tuesday, according to Lookonchain data. MARA previously announced the sale of 15,133 BTC in March and reported 38,689 BTC held in total. Traders fear additional selling pressure as several miners focus on debt reduction to fund a strategic shift toward AI computing data centers.
Riot Platforms (RIOT US) moved 1,500 BTC for sale in the first week of April, according to Arkham data. According to the latest operational update, the company held 15,680 BTC, intensifying fears of continued liquidations as high energy costs negatively impact operations.
Other addresses linked to large miners sold 265 BTC on Tuesday after accumulating since the start of 2024, according to at Lookonchain. The address 3PFNdgGi…myCh139 still holds 112 BTC. Whatever the reason for these moves, sentiment deteriorated after Bitcoin’s hashrate fell to 953 exahashes on Monday, down from 1,083 exahashes in late February.
Strategy (MSTR US) continued to accumulate Bitcoin, totaling 4,871 BTC in the previous week alone. However, investors are increasingly concerned that few buyers will remain after a two-month bear market, especially as companies that took on debt to accumulate Bitcoin face severe pressure and are forced to sell some reserves.
Among the companies that reduction in Bitcoin holdings over the past month, Sequans Communications (SQNS FR) and Nakamoto Inc (NAKA US). Even more worrying, a handful of other listed companies are suffering losses of 35% or more on their Bitcoin holdings, including GD Culture Group (GDC US) and OranjeBTC (OBTC3 BR), according to data from BitcoinTreasuries.
Related: Bitcoin Price Risks “$15,000 Loss” Over Next 5 Months, BTC Analyst Warns
Bitcoin options markets reported discomfort on Tuesday, as put (sell) options traded at a 17% premium to call (call) instruments. Traders believe whales have a better sense of the market, but options distort results due to regular traders constantly buying downside protection rather than a premeditated move by market makers.
There is no indication that professional traders are bearish, but a single day of strong net ETF inflows is not evidence of increased institutional demand. Therefore, even if a deal to reopen the Strait of Hormuz raises risk-off markets, there is a good chance that Bitcoin will struggle to sustain levels above $75,000 given the risk aversion.
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