Bitcoin Enters High-Risk Zone Amid Institutional Selling

The Bitcoin risk index has reached a critical level, warning of potential market volatility.

According to crypto analytics platform Swissblock, the risk index has exceeded 33 out of 100, placing it in the high-risk zone. This increase is attributed to the growing institutional selling pressure, particularly from US spot exchange-traded funds (ETFs).

A proprietary risk index developed by Swissblock measures the relative balance between buying and selling pressure, helping to assess the overall market risk. The platform noted that May has seen a significant shift from accumulation to distribution, contributing to the rising risk levels.

On-chain analytics provider Glassnode reported that US Bitcoin ETFs have experienced net outflows on nearly every trading day since May 7, indicating a persistent institutional sell signal. This steady supply increase without a corresponding demand offset exacerbates market risks.