Data from CryptoQuant shows a strong divergence and high volatility between the $BTC price and the amount of $BTC held by funds in late May 2026:

- $BTC Price: Mainly moving sideways and maintaining a slight downward trend, currently around the $74,000 mark. Meanwhile, Fund Holdings just recorded a very sharp decline from the peak of ~1.37M holdings straight down to the 1.3M mark, right after the rapid accumulation phase in April.

- Institutional cash flow is showing aggressive dumping/distribution actions at this price zone. Proactive selling pressure from funds is the direct cause creating pressure to suppress the price recovery momentum. Caution is needed with the short-term trend as large capital is withdrawing.

Written by Rei Researcher