Spot Bitcoin ETFs have entered another troubling trend, recording outflows for a week in a row. These outflows coincided with the Bitcoin price decline, suggesting that the sell-off may be directly related to institutional sell-offs, as well as miner sell-offs. The funds have now had seven consecutive days of outflows, so this report looks at what happened the last time outflows were this high.
Discover Bitcoin ETFs That Lose Money 7 Days in a Row
According to facts from Coinglass, Spot Bitcoin ETFs have now marked their seventh straight day of outflows. An interesting fact about the outflows is that they average about $100 million per day, which has resulted in about $1.2 billion being withdrawn from the funds so far.
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While the current trend is alarming, it is not the first time that Spot Bitcoin ETFs will bleed for a full week. In April-May 2024, these funds bled for seven consecutive days, at an even higher rate than what is being experienced now. Moreover, the largest single-day outflow was recorded in the same month, when the funds lost $563.7 million on May 1.
This previous trend could provide some insight into what is currently happening and what could happen in the future. In May, after seven consecutive days of outflows, the funds would see a surge, with inflows recorded for two days before seeing another outflow.
However, this was just the beginning of the recovery, as institutional investors once again started throwing their hat into the ring. From May 13, inflows proceeded rapidly, recording 19 consecutive days of inflows and setting a new record.
Going by the previous trend, the Spot Bitcoin ETFs could see a reversal soon, especially with the Bitcoin price recovery. A repeat of May’s trend would trigger an influx of epic proportions, pushing prices higher as demand grows.
BTC on the charts
The Bitcoin price, despite falling to $60,000, is still trading well above the 200-day moving average of $50,613. This suggests that the price remains bullish in the long term, especially as investors choose to hold rather than sell.
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However, in the shorter term, the pioneer cryptocurrency is performing poorly, falling below the 50-day and 100-day moving averages of $65,403 and $63,928 respectively, both of which are important to the digital asset’s short- and medium-term performance. .
However, on the daily chart, Bitcoin is starting to see some upside. Daily trading volume has increased by 35% and the price has recovered above the resistance at $61,000.
Featured image created with Dall.E, chart from Tradingview.com