Bitcoin triggers $7B loss for ETF holders as price could drop to $65,000 while Strategy (MSTR) sits on billion dollar cushion
Bitcoin's price drop below $80,000 has caused US spot ETF holders to incur $7 billion in paper losses, with potential for further decline.Summary
Bitcoin's recent slide below $80,000, hitting lows near $74,609, has resulted in US spot Bitcoin ETF holders facing approximately $7 billion in unrealized paper losses, as their average entry price is around $90,200.
This situation is complicated because ETF holders, often including advisors, tend to rebalance or sell to break even when underwater, potentially leading to "sell-to-even" pressure if prices rally, or risk mitigation selling if prices fall further. This contrasts with MicroStrategy (MSTR), which has an average purchase price of $76,020 and remains profitable, holding a significant cushion.
The losses coincide with a sustained streak of net outflows from the 12 spot Bitcoin ETFs, totaling about $6.18 billion over recent months. If this outflow trend persists, the volume of Bitcoin that market buyers must absorb could significantly outweigh the reduced new supply following the recent halving, potentially driving the price down further, with some analysts citing $65,500 as a key support level if selling pressure continues.
(Source：CryptoSlate)