Spot Bitcoin ETFs have been experiencing outflows for seven consecutive days, coinciding with a decline in the Bitcoin price. This suggests that institutional sell-offs and miner sell-offs may be directly linked to the recent trend of fund outflows. The outflows have averaged around $100 million daily, totaling approximately $1.2 billion pulled out from the funds thus far.
This is not the first time that Spot Bitcoin ETFs have bled for a full week. In April-May 2024, these funds recorded seven consecutive days of outflows to an even higher degree than the current trend. The largest single-day outflow was recorded in the same period, with the funds losing $563.7 million on May 1. Looking back at the previous trend could provide insight into the current situation and potential future outcomes.
Following the previous trend in May 2024, after seven consecutive days of outflows, the funds saw inflows for two days before experiencing outflows again. However, this marked the beginning of a recovery as institutional investors re-entered the market. From May 13 onwards, the funds recorded 19 consecutive days of inflows, setting a new record. This suggests that a potential turnaround could be imminent for Spot Bitcoin ETFs, especially with the recovery in the Bitcoin price.
Despite the drop in the Bitcoin price to $60,000, it is still trading above its 200-day moving average of $50,613, indicating a bullish outlook in the long term. However, on shorter timeframes, the cryptocurrency is performing poorly, falling below its 50-day and 100-day moving averages of $65,403 and $63,928 respectively, which are crucial for short and mid-term performance. On the daily chart, Bitcoin is showing signs of upside potential, with a 35% increase in daily trading volume and a price recovery above the $61,000 resistance level.
The recent trend of Spot Bitcoin ETF outflows raises concerns about institutional and miner sell-offs impacting the market. However, past trends suggest that a potential recovery and turnaround could be on the horizon, especially with the increasing demand for Bitcoin. As the cryptocurrency market continues to evolve, investors should closely monitor these developments to make informed decisions about their investments.
