Spot Bitcoin ETFs have recently been experiencing a worrying trend of outflows for seven consecutive days. These outflows seem to be directly correlated with the decline in the Bitcoin price, indicating that institutional and miner sell-offs could be driving the downward pressure. The outflows have amounted to around $100 million daily, resulting in a total of $1.2 billion pulled out from the funds so far.
This is not the first time Spot Bitcoin ETFs have seen such prolonged outflows. A previous case in April-May 2024 saw similar outflows for seven consecutive days, with a particularly large single-day outflow of $563.7 million on May 1. History shows that after the seven-day outflow period, the funds experienced a brief period of inflows before entering a sustained period of 19 consecutive days of inflows.
If history is any indication, the current trend of outflows in Spot Bitcoin ETFs could signal a potential turnaround soon. Following the recovery in Bitcoin price, a repeat of the May trend could lead to significant inflows and drive prices higher as demand increases. Despite the recent drop in price to $60,000, Bitcoin is still trading above its 200-day moving average, indicating long-term bullish sentiment among investors.
While Bitcoin’s price has fallen below its 50-day and 100-day moving averages, signaling short and mid-term weakness, there are signs of upside on the daily chart. The daily trading volume has increased by 35%, and the price has retested and surpassed the $61,000 resistance level once again. This could indicate a potential reversal in the short-term downtrend and a shift towards more bullish momentum.
The current state of Spot Bitcoin ETFs and the Bitcoin price suggests a period of uncertainty and fluctuation. While the recent outflows have put pressure on the price, historical trends indicate that a reversal could be on the horizon. Investors should closely monitor the market dynamics and price movements to capitalize on potential opportunities for gains in the cryptocurrency market.
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