Spot Bitcoin ETFs have recently experienced a concerning trend of outflows for seven consecutive days. These outflows have been averaging around $100 million daily, totaling to approximately $1.2 billion pulled out from the funds so far. This decline has been closely linked to the drop in the Bitcoin price, indicating a possible correlation between institutional and miner sell-offs and the outflows from the ETFs.
Comparing the Current Situation to Past Events
Interestingly, this is not the first time that Spot Bitcoin ETFs have bled for a full week. A similar occurrence took place back in April-May 2024, where the funds experienced even higher outflows than the current trend. During this period, the largest single-day outflow of $563.7 million was recorded on May 1st. It is important to look back at past trends to gain insights into what might unfold in the future.
A past occurrence in May 2024 provides a glimmer of hope amidst the current downturn. Following seven consecutive days of outflows, the funds saw a brief period of upside, with inflows recorded for two days before outflows resumed. However, this upward movement was just the beginning, as institutional investors re-entered the market, triggering a 19-day period of consecutive inflows. This ultimately set a new record for the funds, hinting at the possibility of a turnaround in the near future.
Despite the recent price drop to $60,000, Bitcoin remains above its 200-day moving average of $50,613, indicating a bullish sentiment in the long term. Investors are holding onto their assets rather than selling, suggesting confidence in the digital asset’s future performance. However, on shorter timeframes, Bitcoin has struggled, falling below its 50-day and 100-day moving averages of $65,403 and $63,928, respectively. These levels are crucial for determining the short and mid-term outlook of the cryptocurrency.
Despite the challenges, there are signs of positivity in the market. Bitcoin is starting to show signs of an upward movement on the daily chart, with trading volume increasing by 35% and the price surpassing the $61,000 resistance level once again. This could indicate a shift in momentum, potentially leading to a reversal in the current downtrend.
The recent outflows from Spot Bitcoin ETFs have raised concerns among investors, but historical patterns suggest that recovery may be on the horizon. By closely monitoring market trends and staying informed about past events, investors can make informed decisions about their cryptocurrency holdings. The current situation may present challenges, but it also offers opportunities for those willing to weather the storm and seize the potential rewards of the digital asset market.