Bitcoin (
BTC-USD
) experienced a downturn, dipping under $118,000 (£87,075) during Thursday’s Asian trading hours. This decline reflects widespread pressure across global digital asset markets, driven by investors securing profits amid exchange-traded fund (ETF) outflows.
The leading
cryptocurrency
, measured by market capitalization, is facing renewed selling activity. This stems from long-term holders capitalizing on gains and continued capital withdrawals from U.S. spot Bitcoin ETFs. The combination of these broad economic and specific market factors has negatively impacted pricing, even with overall demand remaining robust.
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Crypto live prices
In related news, Tesla (
TSLA
) reported gains that were not yet realized stemming from their Bitcoin investment in Q2. This is the first earnings enhancement tied to cryptocurrency under the updated U.S. accounting standards, which now permit companies to adjust the value of digital assets based on market prices.
Tesla’s current holdings include approximately 11,509 BTC, mainly acquired in 2021. The value of these holdings is now estimated at around $1.2 billion, following Bitcoin’s substantial 30% increase in value during the second quarter.
Data from Farside Investors indicates a third straight day of net outflows from U.S. spot Bitcoin ETFs. Investors withdrew $86 million from these investment vehicles on Wednesday alone, resulting in a weekly total exceeding $285 million.
Not all ETFs experienced losses. BlackRock’s (
BLK
) iShares Bitcoin Trust (IBIT) (
IBIT
) defied the trend, attracting $143 million in net inflows. However, these gains were dwarfed by considerable outflows from Fidelity’s Bitcoin fund, which saw $227 million withdrawn. Bitwise’s BITB and ARK Invest’s ARKB also reported moderate outflows.
According to Adrian Fritz, Global Head of Research at 21Shares, Bitcoin’s fundamental positioning remains strong despite recent market fluctuations. He stated that after surging to a peak nearing $123,000 in mid-July, fueled by a golden cross technical pattern and consistent institutional investment, Bitcoin has stabilized within a range of $115,000 to $120,000.
He added that this sideways trading action, characterized by substantial buyer support around $115,000, has established a balanced liquidity environment.
“The larger economic environment influencing these movements has become even more complex,” Fritz noted. “On July 4th, President Trump enacted the ‘One Big Beautiful Bill Act,’ which has been a source of contention. It increases the U.S. debt limit by an extraordinary $5 trillion while simultaneously expanding tax cuts and military spending.”
Despite the exclusion of cryptocurrency-related provisions from the finalized bill, such as tax benefits for staking and airdrops, Fritz suggested that the broader implications could ultimately support Bitcoin in the long term. He explained that increased borrowing and expansive fiscal policies typically lead to sustained inflationary pressures, which, in turn, increase demand for scarce assets such as Bitcoin and gold.