Bitcoin ETF Outflows Continue for 4th Day, $165M Drained Yesterday

Bitcoin ETF Sees 4th Consecutive Day of Outflow Streak, Drained $165M Yesterday

The Bitcoin exchange-traded funds (ETFs) market has been experiencing a steady outflow for the past four days, highlighting the ongoing selling pressure in the cryptocurrency space. On April 17, 2024, these funds saw a negative outflow of $165 million, marking the fifth consecutive day of outflows. This trend comes amidst Bitcoin’s current bearish trend, with the cryptocurrency declining over 13% in the last week.

The largest Bitcoin investment fund globally, Grayscale Bitcoin Trust (GBTC), has been facing continuous withdrawals from investors. Yesterday’s outflow of $133 million added to the negative inflows, indicating investors’ waning interest in the fund, especially considering the substantial 1.5% management fee.

However, amidst the overall outflow trend, there is a bright spot in the form of BlackRock’s iShares Bitcoin Trust (IBIT). While the IBIT’s inflows have slowed compared to earlier in the week, it remains the only ETF recording positive net inflows. The rate decreased to $18 million on April 17, significantly lower than previous days.

The decline in Bitcoin ETFs signals a broader shift in investor sentiment towards Bitcoin investment vehicles. While the introduction of spot Bitcoin ETFs initially sparked enthusiasm, the overall inflow into these offerings has decreased substantially, reflecting changing attitudes among investors.

The recent outflow from Bitcoin ETFs aligns with the cryptocurrency’s downward trajectory, as it lost 13% of its value over the past week, currently hovering around $62,300 with an overall market valuation of $1.21 trillion. This price drop likely impacted investor confidence, leading to outflows across Bitcoin investment products.

According to technical analysis from a pseudonymous analyst named “Bitcoin2go,” Bitcoin is showing a crucial $61,000 support level. While regaining the lost 200 EMA (4h) earlier this week is possible, significant recovery efforts have faced obstacles. The coming weeks could see a shift in market sentiment depending on factors like geopolitical tensions and corporate earnings reports.

Some analysts believe that the recent outflows are simply an acceleration of a correction that was inevitable. With the Bitcoin halving event approaching (less than 48 hours away as of April 18), opinions are divided on its short-term price impact. While experts suggest it may not significantly influence the price, the overall market atmosphere will likely continue to play a major role in shaping Bitcoin’s trajectory in the near future.