Bitcoin ETF Outflows Exceed $300 Million as Analysts Highlight Critical Price Levels

Bitcoin ETF outflows surpass $300m, analysts warn of key price levels

In a week marked by global macroeconomic events and escalating geopolitical tensions, spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded outflows exceeding $300 million. This significant movement of funds comes after a period of bullish inflows, signaling a shift in market sentiment and uncertainty over Bitcoin’s short-term direction.

The outflows, totaling approximately $388.4 million between October 1 and October 3, coincided with the heightening Iran-Israel conflict, which pushed Bitcoin’s price to a weekly low of $60,047. However, a positive turn came on October 4 when better-than-expected U.S. payroll data provided some relief to the market, allowing Bitcoin to reclaim the $62,000 level. Despite this recovery, the three-day outflow streak had a lasting impact, with ETF products seeing $25.59 million in inflows, insufficient to offset the overall outflows.

Since September 13, three consecutive weeks of inflows had brought in about $1.91 billion into spot Bitcoin ETFs. However, this week’s outflows caused these funds to end the first week of October in negative territory, with $301.54 million flowing out, according to SoSoValue data. Notably, Bitwise’s BITB saw the most inflows on the last trading day, while seven out of the twelve Bitcoin ETF products, including BlackRock’s IBIT, saw no movement.

Analysts are closely monitoring key price levels to gauge Bitcoin’s future trajectory. Crypto analyst Ali highlighted that Bitcoin miners have offloaded approximately $143 million worth of Bitcoin since September 29, adding to the selling pressure. Ali pointed out that Bitcoin had been trading below the short-term holders’ realized price of $63,000, indicating a potential risk of a cascading sell-off if the market dips further.

Ali advised investors to watch the $63,000 mark as a crucial level that Bitcoin needs to conquer to avoid further losses. On the other hand, Crypto analyst Immortal suggested a slightly higher short-term target of $64,000, indicating a potential bullish move if Bitcoin breaks above this key resistance level. Despite short-term volatility, experts remain optimistic about Bitcoin’s long-term performance, citing historical Q4 trends and expectations of U.S. rate cuts that could drive prices towards the $72,000 range.

At the time of writing, Bitcoin was trading just above $62,200, marking a 5% drop in the past week. Market sentiment appears to be improving, with the Fear and Greed Index nudging back to a neutral 49 from a more cautious 41 the previous day, according to data from Alternative sources.

Overall, the recent outflows in Bitcoin ETFs and the market’s response to geopolitical events underscore the ongoing volatility and uncertainty in the cryptocurrency market, with analysts urging caution and vigilance in navigating the shifting landscape.