The Bitcoin market was once again put to the test as the spot Bitcoin ETF in the United States recorded $1.72 billion in outflows for the fifth consecutive day, signaling that investor confidence is increasingly fragile.
At the time of writing, Bitcoin is trading around $87,736, up 0.03% since it opened early Monday in Asian trading.
However, the price has yet to re-enter the psychological $100,000 level since November, a factor that has continued to weigh on market sentiment.
On Friday alone, the Bitcoin ETF recorded $103.5 million in net outflows, extending a negative trend that began the previous week.
The period also included a shorter trading week due to the Martin Luther King Jr. Day holiday, but selling pressure remained significant.
This is in line with the Crypto Fear & Greed Index, which is currently at the ‘Extreme Fear’ level.
According to analytics firm Santiment, the crypto market is currently in a phase of volatility, as retail investors start to exit and capital flows into traditional assets such as gold and silver.
However, behind the gloomy atmosphere, Santiment sees more muted positive signals.
Declining social media chatter and stable supply distribution are often early indicators of a price bottom forming.
This view is shared by several analysts. The Bitcoin Layer founder Nik Bhatia described the current sentiment as “very weak”, but considered this fear-filled phase as a test that needs to be overcome before a recovery can begin.
Meanwhile, crypto analyst Bob Loukas believes that overly negative sentiment often opens the door to sudden price rebounds.
