Spot Bitcoin ETF is facing another worrying trend, with consecutive weekly outflows of funds. These outflows occurred simultaneously with the decline in Bitcoin prices, indicating that the sell-off may be directly related to institutional and miner selling. These funds have now seen seven consecutive days of outflows, so this report will focus on what happened the last time such high outflows occurred.
According to data from Coinglass, the spot Bitcoin ETF has seen consecutive outflows for seven days. An interesting fact about these outflows is that they average around $1 billion per day, resulting in a total withdrawal of around $1.2 billion from the funds so far.
While the current trend is concerning, this is not the first time the spot Bitcoin ETF has bled for a whole week. Back in April to May 2024, these funds saw seven consecutive days of outflows, even higher than the current outflows. Additionally, the largest single-day outflow was recorded on May 1st, with the fund losing $563.7 million.
This previous trend can provide insight into what is currently happening and what may happen next. After seven consecutive days of outflows in May, these funds saw an upward trend, with two consecutive days of inflows, followed by outflows once again.
However, this was just the beginning of a recovery, as institutional investors began throwing their hats back into the market. Starting from May 13th, inflows surged, lasting for 19 consecutive days and reaching a historic high.
If the previous trend is any indication, the spot Bitcoin ETF may soon see a turnaround, especially with the rise in Bitcoin prices. A repeat of the May trend will trigger massive inflows of funds, driving up prices as demand grows.
On the chart, BTC
Although the price of Bitcoin has dropped to $60,000, it is still far above its 200-day moving average of $50,613. This indicates that, in the long term, the price will continue to rise, especially when investors choose to hold rather than sell.
However, in the shorter time frame, the leading cryptocurrency is not performing well, being below the 50-day and 100-day moving averages of $65,403 and $63,928 respectively. Both of these numbers are important for the short-term and medium-term performance of the digital assets.
However, on the daily chart, Bitcoin is showing some upward movement. Its daily trading volume has increased by 35%, and the price has once again risen above the resistance level of $61,000.
BTC price above $62,000 | Source: BTCUSD on Tradingview.com