The Spot Bitcoin ETFs have been experiencing outflows for seven consecutive days, with an average of $100 million being pulled out daily. This has led to a total of $1.2 billion being withdrawn from the funds so far. The high level of outflows is seen as alarming, especially considering the correlation with the decline in the Bitcoin price.
Looking back at historical data, there was a similar period in April-May 2024 when the Spot Bitcoin ETFs bled for seven consecutive days, at an even higher level than what is being witnessed now. In May 2024, the funds experienced the largest single-day outflow of $563.7 million on May 1. This previous trend could provide some insights into the current situation and potential future developments.
Despite the current outflow trend, there is hope for a potential recovery based on past trends. After the seven consecutive days of outflows in May 2024, the funds saw a turnaround with two days of inflows. This led to a significant increase in institutional investor involvement, resulting in 19 consecutive days of inflows and setting a new record.
The Bitcoin price, despite dropping to $60,000, remains above its 200-day moving average of $50,613, indicating long-term bullish sentiment among investors. However, the cryptocurrency has fallen below its 50-day and 100-day moving averages of $65,403 and $63,928 respectively, which are crucial for short and mid-term performance.
On the daily chart, Bitcoin is showing signs of upside movement, with a 35% increase in daily trading volume and a price recovery above the $61,000 resistance level. This could indicate a potential shift in market sentiment towards more positive price action.
Overall, the ongoing outflows in Spot Bitcoin ETFs are a cause for concern, especially given the correlation with the Bitcoin price decline. However, historical trends suggest that there is a possibility for a recovery and inflows into the funds, which could drive prices higher as demand increases. Investors will continue to monitor the situation closely to see how the market evolves in the coming days.