After Bitcoin (BTC) broke its all-time high of $109,000, a shocking sell-off broke out from the US government.
Bitcoin reached its all-time high of $111,970 on May 22, and the global cryptocurrency market capitalization surpassed $3.5 trillion once again. The following day, US President Donald Trump threatened the European Union with a 50% tariff on all imports. Trump stated that negotiations with the EU were not going well. This led to a massive sell-off, dropping Bitcoin's price below $107,000. Nevertheless, both small and large investors continued to accumulate their Bitcoin savings.
■ Decrease in Bitcoin balance
According to Coinglass data, the total Bitcoin balance on centralized exchanges has shown a continuous decline over the past month, decreasing from 2.26 million Bitcoins on April 23 to 2.15 million Bitcoins on May 24. Coinbase and Binance topped the outflows list with 40,772 Bitcoins and 39,713 Bitcoins, respectively, over the past week. The decrease in Bitcoin balance on centralized exchanges indicates that investors are likely leaning towards accumulating the leading cryptocurrency as a long-term investment. This also suggests reduced price volatility coupled with a steady rise in value. US Bitcoin spot ETFs recorded net inflows of $2.75 billion last week - the third largest weekly inflow - according to SoSoValue data.
The net inflows of Bitcoin exchange-traded funds (ETFs) reached $934.7 million in a single day this week on May 22. With these latest inflows, the cumulative value of these American investment products surpassed $44.5 billion. The strong inflows into the ETFs also indicate institutional investors' optimism regarding including Bitcoin in their investment portfolios.
