Bitcoin (BTC) price is down 23% from its March 14 all-time high of $73,835 reached on March 14 and recently fell to a two-month low of $56,500 on May 1. Data from Cointelegraph Markets Pro and TradingView showed that the pioneer cryptocurrency has been sealed in a downtrend for almost 60 days, signaling a potential shift in market sentiment as more traders continue to book profits. Let’s look at the reasons why the Bitcoin price is down today.Bitcoin holders are accumulating lessBTC price has been in a bit of a lull since the initial post-halving correction, which presented “prime buy zones” for late investors. However, data from Glassnode shows Bitcoin accumulation has failed to keep up with the BTC issuance rate. The chart below shows that all investor cohorts have accumulated just over 10,000 BTC over the last 30 days, against 19,000 BTC issued over the same timeframe. Commenting on this phenomenon, James Van Straten, lead analyst at CryptoSlate, said this was happening for the “second time in the past few months.”The other time was in March, which was followed by a 17% BTC correction between March 14 and March 19. The accumulation trend score cohort is a metric that assesses the quantity of BTC accumulated by different investor cohorts over the past 15 days. It employs a slightly different moving average that bolsters a similar narrative. Following the intense accumulation until March, which propelled BTC to its all-time high, all cohorts began selling off their assets shortly after. The severe distribution has persisted since, with the latest data from March showing no signs of change.As shown in the IOMAP chart below, more than 47.42 million Bitcoin addresses are in profit at current prices. This means sell-side pressure will continue to mount amid profit-taking, lowering the BTC price.Bitcoin ETF flows turn negative againInvestors’ de-risking behavior was also visible across the spot Bitcoin exchange-traded funds (ETFs), where traders have resumed withdrawing their capital.After recording positive net flows for two consecutive days, data from Farside Investors shows U.S.-based spot Bitcoin ETFs recorded outflows totaling $15.7 million on May 7. Grayscale’s GBTC fund, which witnessed its first netflows after 78 days on May 3, was the primary driver behind May 7 ETF withdrawals with a total of $15.7 million outflows. At the same time, inflows into other Bitcoin ETFs continued to slow down. Flows into BlackRock’s iShares Bitcoin Trust (IBIT) have been at a standstill since April 24, only seeing inflows on May 3 and May 6.Related: Hong Kong Bitcoin and Ether ETFs have tough debut on first-day trading“Yesterday’s ETF Flows came in at -$15.7M,” noted independent market analyst Daan Crypto Trades, adding that flows were “mostly flat on the day, which was also clear in the #Bitcoin price action.”This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
