Bitcoin Slides to About $62,000, Its Lowest Since July, as US ETFs Shed $3 Billion

Fund flows show the pressure most clearly. The spot funds were among the main channels bringing institutional and Wall Street money into bitcoin. They are now adding to the selling.

Stablecoin balances have also shrunk. Joshua Lim, co-head of markets at FalconX, said explanations for the weakness centred on outflows of about $20 billion from stablecoin balances over the past month, along with the planned Anthropic initial public offering and its possible effect on liquidity.

Demand to take part in the Anthropic offering is growing. Traders said some investors may be moving part of their portfolios into new opportunities, including upcoming listings, though it is unclear how much money is moving directly from crypto into the IPO.

The broader backdrop is also working against bitcoin. Yields on 10-year US Treasuries have risen, and worries about inflation have raised the chance that US monetary policy stays tight for longer. A stronger dollar makes dollar-priced assets less attractive to some foreign investors. Political uncertainty after Democratic gains in the US midterm elections and geopolitical pressure on energy prices have added to the strain.

The security breach at Binance has renewed concerns about operational risk at trading platforms. Those concerns weigh more heavily during downturns, when liquidity is thin.

Ayesha Kiani, chief operating officer of Monarq Asset Management, said the near-term direction would depend largely on whether institutional demand stabilises and whether macroeconomic conditions allow investors' appetite for risk to return. Until then, she said, rallies could stay fragile and volatility high.

The selling has spread to smaller tokens, some of which have lost gains built up over years. Traders are watching $58,000, close to bitcoin's lowest price this year, as a possible support level.