Spot Bitcoin ETFs in the United States have recorded a reduced institutional investment interest over the last 6 days due to consistent negative net flows in investments. On Tuesday, the numbers were astonishing, with losses hitting the striking figure of $937 million during a single day
Which also happens to be the highest sum ever withdrawn since the establishment of the ETF. These withdrawals have worsened as the price of Bitcoin broke crucial support values falling below $88,500
Which contributed to the crypto losing more than 7.52% this week. This price movement within the market has worsened the overall sentiment in respect to the cryptocurrency market.
Bitcoin ETFs Hold Sell Pressure in the Lower Market Signals
The cryptocurrency industry continues to struggle against a bearish market, with Bitcoin having trouble holding on to primary support zones.
Over the last week, U.S. Bitcoin ETFs have had the highest outflows in a week. According to Velte Lunde, Head of Research at K33 Research, over 14,579 BTC were withdrawn globally in a single day
Which is the largest single BTC ETP market outflow to date. Lunde pointed out that Bitcoin ETFs have been facing persistent selling pressure for the entirety of February. In fact, 69% of the month was spent selling more than buying in Bitcoin ETFs.
This statistic reveals that an increasing number of investors are trying to minimize their risks by moving away from the Bitcoin ETFs, and during the current Bear market, this is the most sensible approach.
Fidelity’s FBTC led Tuesday ETF outflows with $344 million, while BlackRock’s IBIT saw $144 million outflows, according to Farside Investors data. Fidelity has had outflows for six days straight. In total, crypto ETPs and ETFs has seen 1.7 billion net outflow this week alone.
Bitcoin Exchange Inflows Surge, BTC Price Crash to $70K Imminent?
According to CryptoQuant Analyst Amr Taha, exchange activities for Bitcoin have increased sharply, the” Exchange Inflow (Top 10)” measure exceeded 5,000 BTC on a specific day thrice after the United States Consumer Confidence report was published.
American consumer sentiment has plummeted to an eight month trough, because of heightened worries about inflation and new tariffs enacted during the second term of the Trump administration.
The increase in transactions indicates a potential to sell pressure as large or institutional holders may be transferring Bitcoin to exchanges to get ready for selling, Potentially setting large outflows from Bitcoin ETFs for some time in the future.
Arthur Hayes, co-founder of BitMEX, has noted that if the former President Donald Trump does not manage to enact his proposed spending budget alongside the debt ceiling increase, then Bitcoin could decline towards pre-election levels in the range of $70,000 and $75,000.
“This is a test of how strong Trump’s grip is within the Republican Party,” Hayes said, citing that individuals participating in the market should “chill out, retrace and wait” as things unfold. At his time, BTC price is $88,488 with a daily trading volume slump down to $68 billion
