Spot ETFs that track the world’s largest cryptocurrency are usually a strong sign of how the price of the underlying asset is performing, unlike some altcoins.
As such, it is perhaps not surprising that last week, in which Bitcoin fell to a 19-month low, it experienced massive net outflows. The worst ever.
Bitcoin ETFs have bled dramatically
The data from SoSoValue paints a painfully clear picture. the Bitcoin ETFs It has been deep in the red for four straight weeks, all in the billions. What’s worse is that net withdrawals have gradually accelerated. It peaked in the last trading week, with $1.72 billion withdrawn from financial instruments. As the title of the article suggests, this was the worst trading week in their two-and-a-half-year history.
Total cumulative net flows declined sharply over this four-week period, going from $59.34 billion to $53.94 billion. The current downward streak is worse than the one that occurred after the crash in early October, when traders were overleveraged. More than $19 billion was wiped out In one day, the entire market sentiment fell into obscurity.
If we break down the past week (or even a few weeks) into daily performance, the violent picture becomes even more clear. Aside from June 4, when net inflows prevailed at a very modest $3.05 million, the other four days were in the red, with June 2 seeing the highest number of withdrawals at $519 million.
From May 15 to June 5, only the aforementioned net inflows of $3.05 million were in the green zone; The rest were withdrawals.
BTC price sees new lows
At the same time that investors were withdrawing money from ETFs en masse, the price of the underlying asset saw a violent decline. It started the week (and month) at around $73,000 before the bears quickly regained control of the market and began several successive declines that peaked on Friday.
After several successful attempts by the bulls to hold the $60,000 support level, including during the collapse in early February, this level finally surrendered two days ago. Bitcoin fell to $59,100 for the first time since before the US presidential election in late 2024.
The exodus of ETFs is among the main reasons behind this significant decline, but the crash was not an event related only to cryptocurrencies, as is the case in essentially all financial markets. I collapsed on Friday after an apparently positive US jobs report.
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