Bitcoin ETFs in the United States continue to be under pressure as they have seen $4.4 billion in outflows for 13 consecutive trading days, reflecting increasingly cautious investor sentiment towards the crypto market.
At the time of writing, Bitcoin is trading at $63,276, up 0.24% since it opened early Friday in Asian trading.
Not only did this set a new record for the longest outflow in Bitcoin spot ETF history, it also reflects increasingly cautious investor sentiment towards the world’s largest digital asset.
On Wednesday alone, Bitcoin spot ETFs saw net outflows of $396.6 million, bringing the total outflows since mid-May to a record high.
During the same period, Bitcoin prices have also plunged nearly 21%, from around $80,000 to around $63,400, raising concerns that the market is entering a deeper correction.
Among the funds that took the biggest hit was BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for about $3.3 billion of the total outflows.
Fidelity Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust also saw significant fund outflows, indicating widespread selling pressure among institutional investors.
Analysts see several factors contributing to the decline.
In addition to weakening demand for Bitcoin, selling activity by long-term holders and miners is also said to be weighing on the market.
The latest data shows that Bitcoin demand has fallen by more than 500,000 BTC in a month, the fastest decline since the Terra-Luna crisis in 2022.
However, not everyone is seeing this development negatively.
Some market observers believe that the supply of Bitcoin sold by early holders is now moving to financial institutions and traditional investors.
This change in ownership structure has the potential to create a stronger foundation for long-term growth.
For now, the market remains cautious.
However, if ETF outflows begin to slow and investor interest recovers, Bitcoin has the potential to regain the momentum it has lost in recent weeks.
