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Bitcoin ETF outflows reached $1.3 billion in two weeks following the cryptocurrency market crash
US Spot Bitcoin Exchange Traded Funds (ETFs) have seen outflows of around $1.3 billion over the past two weeks. This massive outflow coincides with the bearish trend in the overall cryptocurrency market.
However, analysts remain optimistic about Bitcoin’s potential despite the bearish sentiment.
Bitcoin ETFs see massive outflows as the entire cryptocurrency market collapses due to several bearish factors
Recent outflows from Spot Bitcoin ETFs are the worst since April 2024. Historically, Bitcoin ETFs have seen massive outflows of $1.2 billion between April 24 and early May.
According to data from Farside Investors, ETFs have seen outflows of $1.298 billion over the past two weeks of trading. Still grayscale guides outflows with $517.3 million within this time frame.
By comparison, BlackRock’s Bitcoin ETF, IBIT, was the only fund to post positive results this period, racking up inflows of $43.1 million over the past two weeks.
Meanwhile, the current outflows coincide with Bitcoin’s recent collapse. Bitcoin is trading at $60,728, down 3.5% in the past 24 hours and down nearly 17% from its all-time high.
The analytical platform TokenSuite shared some reasons behind Bitcoin’s collapse. According to analysts, The alleged plans of Mt. Gox distributing 143,000 BTC to its creditors in July must have contributed to the negative sentiment.
Investors fear that the distribution adds massive selling pressure to Bitcoin, as most creditors may surrender their BTC tokens once they receive them.
Also, miners’ sales of BTC increased to around $1.8 billion BTC in the first three weeks of the month, adding selling pressure on Bitcoin. Additionally, huge Bitcoin ETF outflows of nearly $1 billion recorded since June 15 have contributed to the BTC price collapse.
Additionally, the German government sold over $200 million worth of BTC, adding to the pressure massive forced liquidations.
Jonathan de Wet, Chief Investment Officer at cryptocurrency trading platform ZeroCap, She said the market assault will continue. The expert predicted that Bitcoin will fall to the key support level of $57,000 in the coming weeks.
However, despite the price collapse, de Wet believes that Bitcoin and Ethereum have shown remarkable resilience compared to other market assets.
Other crypto analysts share predictions on possible Bitcoin price movements amid decline
Analysts are optimistic that Bitcoin will recover after the ongoing recession. Popular market analyst Willy Woo states that the ongoing retracement will persist for a few more weeks before Bitcoin recovers.
In a June 24 analysis, Rekt Capitale he said Bitcoin trades for over seventy days after the halving, a phase he believes will precede a deep rally. According to the analyst, after the 2016 halving, Bitcoin has entered a bullish trend at this stage.
Rekt Capital says Bitcoin is in the reaccumulation range and will do so encounter a prolonged retracement before resuming its uptrend. He measured the retracement phase using a price chart, showing that Bitcoin has experienced an average retracement of -22% over all its past cycles.
Furthermore, the analyst revealed that the average retracement of BTC lasts 42 days. The current pullback of BTC is -16%, which according to Rekt Capital is not yet average. Therefore, it remains optimistic about the chances of a future recovery of Bitcoin.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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