Bitcoin ETF Investors Underwater as BTC Hits Seven-Month Low
Bitcoin fell to a seven-month low of $85,000, shedding over $20,000 in ten days. The average spot Bitcoin ETF investor is now underwater, data from Bianco Research show. Thursday saw $903.2 million in net outflows from Bitcoin ETFs, pushing weekly net redemptions to $1.4552 billion. BlackRock’s IBIT fund led withdrawals with $355.5 million exiting on Thursday and $1.09 billion over the past four sessions. JPMorgan analysts directly linked the sell-off to ETF exodus. On-chain data from Arkham Intelligence revealed whale Owen Gunden sold $1.3 billion worth of bitcoin since October, transferring $230 million to Kraken yesterday. A fresh stimulus package of ¥135 billion in Japan also weighed on BTC prices. Traders should monitor ETF flows and whale movements as catalysts for further volatility.
Bearish
The massive net outflows from Bitcoin ETFs and the price drop to a seven-month low signal sustained bearish pressure. Historically, significant ETF redemptions have preceded further declines as institutional investors exit positions en masse. For example, in the first quarter of 2024, similar ETF outflows in the Ethereum market led to intensified selling and deeper price corrections. In the short term, ongoing withdrawals and whale sales can exacerbate dips and volatility. Over the long term, recovery in ETF inflows and stabilization of on-chain whale activity are needed to restore bullish sentiment. Traders should watch ETF flow data and large wallet movements as leading indicators for potential market reversals.