The recent outflows in Spot Bitcoin ETFs have sparked concerns among investors, as they have now recorded seven consecutive days of outflows. These outflows, averaging around $100 million daily, have led to a total of $1.2 billion being pulled out from the funds so far. The correlation between these outflows and the decline in the Bitcoin price suggests that institutional sell-offs and miner sell-offs may be driving the downward trend.
Interestingly, this is not the first time that Spot Bitcoin ETFs have experienced such prolonged outflows. In April-May 2024, these funds bled for seven consecutive days, with a higher degree of outflows than what is currently being witnessed. The largest single-day outflow of $563.7 million was recorded in May 1, further highlighting the severity of the situation. Looking back at this previous trend could provide insights into the current scenario and potential future outcomes.
Following the seven consecutive days of outflows back in May, the funds saw a brief period of upside, recording inflows for two days before experiencing outflows again. However, this marked the beginning of a recovery phase, as institutional investors started reinvesting in the funds. From May 13 onwards, the inflows surged, totaling 19 consecutive days of inflow and setting a new record. This historical recovery trend suggests that a turnaround for Spot Bitcoin ETFs could be on the horizon, especially with the ongoing recovery in the Bitcoin price.
Despite the recent drop in the Bitcoin price to $60,000, it still remains well above its 200-day moving average of $50,613. This indicates a bullish long-term outlook, as investors continue to hold onto their assets. However, on shorter timeframes, Bitcoin is underperforming, falling below its 50-day and 100-day moving averages of $65,403 and $63,928 respectively. These levels are crucial for the short and mid-term performance of the digital asset.
On the daily chart, Bitcoin is showing signs of recovery, with a 35% increase in daily trading volume and a price recovery above the $61,000 resistance level once again.
The recent outflows in Spot Bitcoin ETFs raise concerns about the underlying factors driving this trend. Despite the current challenges, historical patterns suggest that a potential turnaround could be in the cards, especially with the recovery in the Bitcoin price. Investors should closely monitor these developments and consider the long-term bullish outlook for Bitcoin as they navigate through the volatile market conditions.
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