Bitcoin (BTC) is expected to undergo a “purification” as a new wave of long-term institutional money enters the market, according to EMJ Capital founder Eric Jackson. BTC has become a high-beta tech position due to ETFs and institutional involvement. Stablecoin supply needs to recover to reverse the current bearish trend.

US spot Bitcoin ETFs are experiencing regular net outflows, exacerbating the weak price action. Bitcoin’s price is closely linked to BlackRock’s iShares Expanded Tech-Software Sector ETF (IGV). Institutional investors have become the marginal buyer this cycle, with retail investors favoring tech stocks.

In the future, Jackson predicts that longer-term institutional money, including sovereign wealth funds and corporate treasuries, will drive Bitcoin’s price. The institutional exit is seen as a purification of the BTC thesis. Monday’s net Bitcoin ETF outflows were over $200 million, with BTC/USD dropping below $63,000.

Bitcoin’s price dipped below $63,000 on Tuesday, reaching its lowest level since February. Market participants have set new macro bottom targets near the $50,000 mark. This article does not offer investment advice, and readers are encouraged to conduct their own research before making decisions.

Read more at Cointelegraph: Bitcoin Investment Thesis Still Intact Despite ETF Exit, Analysis Says.