Bitcoin ETFs Hold Billions As BTC Slips Below $70K, Analysts Warn Of Possible Free Fall

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Bitcoin ETFs Hold Billions As BTC Slips Below K, Analysts Warn Of Possible Free Fall

Bitcoin (BTC)’s struggle to hold key price levels is raising new concerns across crypto markets, as exchange-traded funds continue to control tens of billions of dollars in assets.

Bearish Chart Signs and Whale Activity Intensifies Stress

Technical indicators suggest that the correction may not be complete. Market analysts highlight the developing “bear” formation, a pattern that usually appears after a sharp decline and usually precedes another down leg.

A confirmed split could push Bitcoin into the $55,000–$60,000 range, representing a 20% drop from current levels.

On-chain data from CryptoQuant shows increasing inflows to the exchange from major holders. The rate tracking large transactions moving into trading platforms has recently reached record highs, which have historically been associated with increased sell-side pressure. Analysts interpret this as a preparation for distribution rather than accumulation.

More data suggests the market has entered a “depression phase,” with losses mounting among new investors while long-term holders continue to profit. Similar setups in previous cycles often precede extended consolidation or deep conditioning before recovery.

Bitcoin ETFs Are Always Big, But They Really Aren’t

Despite the price weakness, US spot Bitcoin ETFs still hold about $85 billion, which equates to more than 6% of assets in circulation. However, analysts caution that the strength of the ETF may not reflect strong bullish conviction.

Research shows that a large portion of ETF ownership is dominated by market makers and arbitrage funds who maintain hedged positions rather than directional bets. Funds linked to asset managers such as BlackRock continue to see activity, but flows have recently turned negative, marking several consecutive weeks of net outflows.

The position of the institution is also changing elsewhere. Filings show that Harvard University cut half of its Bitcoin ETF exposure late last year, highlighting a sense of caution among major investors.

Greater Uncertainty and Sentiment Keep Markets on Edge

Broader financial conditions add to the pressure. Bitcoin remains closely related to technology stocks and risk assets, both of which have reacted to expectations of higher long-term interest rates. Upcoming Federal Reserve signals and economic data releases are likely to shape the short-term path.

The sentiment indicators tracked by Matrixport show markets dominated by extreme fear, a situation that sometimes precedes rebounds but can also be accompanied by late stage corrections.