Bitcoin spot exchange-traded funds (ETFs) have experienced a significant outflow of $601 million in the past week, signaling a possible shift in investor sentiment.
The notable exodus from these funds suggests increased caution among investors, potentially driven by a combination of profit-taking and a reaction to the ongoing bearish market conditions.
Major Bitcoin ETFs Witness Substantial Withdrawals
According to data from Lookonchain, ten major Bitcoin ETFs recorded a combined outflow of 10,428 BTC over the past seven days. This outflow, equivalent to approximately $601 million, reflects a broader trend of reduced holdings among these funds.
Over the past 7 days, 10 #Bitcoin ETFs saw a total outflow of 10,428 $BTC($601M).All ETFs are reducing their $BTC holdings! pic.twitter.com/kzO8LmB6wE
— Lookonchain (@lookonchain) September 4, 2024
Leading the withdrawals were the iShares (BlackRock) Bitcoin Trust (IBTC) and the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw notable outflows of 228 BTC and 3,753 BTC, respectively.
In addition to these funds, the ARK 21Shares Bitcoin ETF (ARKB) and the Bitwise Bitcoin ETF (BITB) also reported significant net outflows. On the last day alone, 5,514 BTC, valued at $317.82 million, were withdrawn from the U.S. Bitcoin ETF market. As of now, the total Bitcoin held across these ETFs stands at 905,535 BTC, with an estimated value of $52.19 billion.
Current Market Conditions and Bitcoin Price Movement
As of today, Bitcoin is trading at $56,297.43, reflecting a 3.51% decrease in the last 24 hours. The cryptocurrency has seen a trading volume of $30,062,284,402 within the same period.
Bitcoin remains the top-ranked cryptocurrency by market capitalization, which currently stands at $1,111,878,411,703. The circulating supply of Bitcoin is 19,750,075 BTC, with a maximum supply capped at 21,000,000 BTC.
Source: CoinMarketCap
The decline in Bitcoin’s price over the past 24 hours has mirrored a broader bearish sentiment in the market. The price chart for the day started with Bitcoin trading around $58,280 before gradually declining throughout the day.
A sharp drop was observed around 9:00 AM, pushing the price below $56,500, followed by a slight recovery, with the price stabilizing slightly above $56,330 by the end of the day.
Technical analysis of Bitcoin’s price movement reveals a general downtrend, with the asset testing lower support levels. The Moving Average Convergence Divergence (MACD) indicator is currently showing bearish momentum.
The MACD line remains below the signal line, and both indicators are in negative territory, suggesting potential downward pressure on Bitcoin’s price in the near term.
Source: TradingView
Additionally, the Relative Strength Index (RSI) stands at 39.76, approaching the oversold territory, typically marked by an RSI below 30. While this indicates that Bitcoin may still have room for further downside, it also suggests that the market could be nearing a potential reversal if the RSI continues to decline.
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