Bitcoin Breakdown Sparks Chain Reaction — North American Institutions Accelerate Their Exit
Bitcoin’s drop below the 376-day moving average has triggered a rapid shift in market dynamics. Key institutional indicators—including the Coinbase Premium Index, the Grayscale trust discount, and after-hours ETF premiums—all flipped negative simultaneously for the first time since the previous market peak. This signals that U.S. institutional selling is moving faster than selling in other regions, with pricing pressure shifting from Asia toward aggressive Western outflows.
On-chain data adds to the concern: large wallets linked to Coinbase Prime have turned net-negative, with significant outflows of WBTC, suggesting institutions are converting assets to exit through DeFi liquidity routes. This indicates that the wave of panic selling from North America is still not fully unleashed.
As U.S. markets open, trading volumes in major Bitcoin spot ETFs—such as IBIT and FBTC—are expected to surge, potentially delivering a second shock to spot prices. This type of cross-market linkage requires heightened caution.
