Institutions say Bitcoin's latest $1.7B selloff Is a sentiment shock, not a structural problem

Last week saw roughly $1.7 billion leave US spot Bitcoin ETFs. At first glance that sounds like the kind of number that should trigger panic, but interestingly several institutional analysts are arguing exactlythe opposite. Their view is that this isn't really a Bitcoin-specific problem at all, it's more of a macro sentiment shock driven by geopolitical tensions, changing rate expectations and a general reduction in risk appetite across markets. According to them, the thesis hasn't changed, only the mood has changed.

If they're right, this looks more like a sentiment event than a structural one. What caught my attention is that markets don't bottom when analysts are right but they bottom when sellers simply run out of reasons to sell. Maybe we're close to that point, maybe we're not, but it does feel like a lot of people are treating macro fear and Bitcoin fundamentals as if they were the same thing. .............Source: https://cointelegraph.com/news/crypto-outflows-sentiment-shock-structural-crisis-coinshares