Spot Bitcoin ETFs are experiencing a unique trend, as they have seen outflows for seven consecutive days. It is noteworthy that these outflows coincide with the decline in the Bitcoin price, indicating a possible connection to institutional and miner sell-offs. In total, the funds have witnessed around $1.2 billion being pulled out so far, with an average of approximately $100 million daily.
Although this current trend is concerning, it is not the first time that Spot Bitcoin ETFs have faced outflows for a full week. A similar situation occurred in April-May 2024, but the outflows during that period were even more significant. In fact, on May 1, the funds recorded their largest single-day outflow of $563.7 million.
Looking back at that previous trend may offer some insights into what could happen next. After the seven consecutive days of outflows in May, the funds started to experience inflows for two days before facing outflows again. However, this marked the beginning of a recovery as institutional investors began reentering the market. From May 13, the inflows surged, reaching 19 consecutive days of inflow and setting a new record.
If history is any indication, Spot Bitcoin ETFs might soon witness a turnaround, particularly considering the recovery in the Bitcoin price. A repetition of the May trend could result in monumental inflows, which would drive up prices due to increased demand.
In terms of Bitcoin’s price performance, it remains above its 200-day moving average of $50,613, indicating a bullish long-term outlook as investors choose to hold rather than sell. However, the cryptocurrency has fallen below its 50-day and 100-day moving averages of $65,403 and $63,928, respectively, on shorter timeframes. These levels are crucial for its short and mid-term performance.
Nevertheless, on the daily chart, Bitcoin is showing signs of upside potential. Its daily trading volume has increased by 35%, and the price has managed to recover above the $61,000 resistance level once again. This suggests a potentially positive outlook for the cryptocurrency.
Please note that the featured image in this article was created with Dall.E, and the chart is sourced from Tradingview.com.