Spot Bitcoin ETFs have entered another disturbing trend, recording outflows for one week straight. These outflows have coincided with the decline in the Bitcoin price, suggesting that the sell-offs may be directly linked to institutional sell-offs, as well as miner sell-offs. The funds have now completed seven consecutive days of outflows, so this report takes a look at what happened the last time that the outflows were this high.
Spot Bitcoin ETFs Lose Money For 7 Straight Days
According to data from Coinglass, Spot Bitcoin ETFs have now marked their 7th consecutive day of outflows. An interesting fact about the outflows is that they have averaged around $100 million daily, leading to around $1.2 billion pulled out from the funds so far.
While the current trend is alarming, it is not the first time that Spot Bitcoin ETFs will be bleeding for a full week. Back in April-May 2024, these funds bled for 7 consecutive days, to an even higher degree than what is being experienced now. Additionally, 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 lend some insight into what is currently happening and what might happen next. Back in May, after seven consecutive days of outflows, the funds were to see upside, recording inflows for two days before seeing outflows again.
However, this was only the beginning of the recovery as institutional investors began to throw their hats in the ring once again. Starting from May 13, the inflows moved fast, recording 19 consecutive days of inflow, and setting a new record.
If the previous trend is anything to go by, then the Spot Bitcoin ETFs could be seeing a turnaround soon, especially with the recovery in the Bitcoin price. A repeat of the May trend would trigger inflows of epic proportions, which will drive prices as the demand grows.
BTC On The Charts
The Bitcoin price, despite dropping to $60,000, is still trading well above its 200-day moving average of $50,613. This suggests that the price continues to be bullish in the long term, especially as investors opt to hold rather than sell.
However, on the shorter timeframes, the pioneer cryptocurrency is performing poorly, falling below its 50-day and 100-day moving averages of $65,403 and $63,928, respectively, both of which are important for the short and mid-term performance of the digital asset.
On the daily chart, though, Bitcoin is starting to see some upside. Its daily trading volume is up 35% and its price has recovered above the $61,000 resistance once again.
