Bitcoin (CRYPTO: BTC) trades around $77,000, following $1 billion in outflows last week after a six-week inflow streak.

Bitcoin Failed At 200-Day MA On First Real Macro Shock

Bitcoin popped above $82,000 on the CLARITY Act vote, then reversed hard and now sits below the 200-day moving average at $82,200 after getting rejected five times this month.

Support holds at $76,000-$78,000. Breaking below $75,000 opens up $70,000-$72,000.

The weekend slide toward $77,000 triggered $657 million in liquidations, $584 million from longs.

Meanwhile, Ethereum (CRYPTO: ETH) dropped 10%, continuing to underperform across spot and derivatives. ETH/BTC pressed 0.0275 with funding softer and relative implied volatility elevated.

Institutions Sold Into Strength, Not Adding

Wintermute Research flagged the 7-day average netflow hitting -$88 million per day—the worst since mid-February.

Bitcoin spot ETFs lost $1 billion for the week while Ethereum ETFs bled $255 million.

Glassnode confirmed the selloff thesis, noting institutions used the rally to take profits rather than add exposure. 

When leverage is the marginal buyer, the unwind happens fast. Last week’s breakout was leverage and short covering, not spot buying.

Interestingly, XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) ETF products kept attracting institutional flow even as Ethereum bled, signaling rotation into select altcoins rather than a complete crypto exit.

Hawkish Fed Chair Adds Pressure

Kevin Warsh confirmed as Fed Chair 54-45 on Wednesday, the narrowest margin in the modern era. 

He chairs the June 16-17 FOMC meeting and leans hawkish historically, adding to near-term pressure on risk assets.

Empire State Manufacturing surged to 19.6 versus 7.0 expected with prices paid accelerating, adding to inflation concerns that could keep monetary policy tighter for longer.

Wintermute identified $76,000-$78,000 as the level to watch. 

A hold through Nvidia earnings Wednesday rebuilds confidence, but breaking $75,000 with funding resetting and ETF flows negative opens up the low $70,000s quickly.

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