Recent data reveals a significant outflow from spot Bitcoin ETFs, totaling $165 million, as crypto market sentiment continues to deteriorate in anticipation of the upcoming Bitcoin halving. The Bitcoin price has correspondingly slipped below the $60,000 mark. This marks a series of withdrawals, with a net outflow of $165 million recorded just on Wednesday. This is part of a broader trend this week, witnessing the fourth consecutive day of outflows as the crypto community braces for the much-anticipated Bitcoin halving event.
The decline in Bitcoin's price was pronounced, dropping to a low of $59,678. This downturn in market sentiment is mirrored by the Crypto Market Fear & Greed Index, which fell to its lowest point since January, registering a 57 today compared to last week's 77.
Detailed Outflow Analysis
Bloomberg and Farside Investors reported that the total net outflow from these ETFs reached $165 million on April 18. The recent U.S. tax filing period has notably impacted buying activity, with the trading volumes of the nine tracked ETFs reaching nearly $2.7 billion on Wednesday. Notably, the Grayscale Bitcoin Trust (GBTC) has seen a slowdown in outflows this week, although April 17 marked an increase to $133.1 million from $79.4 million.
Bitwise Bitcoin ETF experienced its first-ever outflow, losing $7.3 million. In contrast, the Ark 21 Shares Bitcoin ETF continued to see outflows, with $42.7 million exiting on Wednesday.
Inflows and Market Movements
Amid these outflows, BlackRock's iShares Bitcoin ETF (IBIT) recorded a relatively modest $19.1 million inflow, a significant drop from previous amounts. After this latest influx, BlackRock's net inflows have reached over $15.37 billion, with asset holdings surging to more than $16.64 billion.
However, the Fidelity Bitcoin ETF and other spot Bitcoin ETFs did not report any new inflows. Bloomberg's ETF analyst James Seyffart remarked that it is not uncommon for Bitcoin ETFs to have days without any new inflows, emphasizing that this should not be viewed as a failure of these financial products.
Bitcoin's Market Outlook
In the last 24 hours, Bitcoin's price has decreased by nearly 5%, following a descending channel pattern. Currently, it is trading at $61,151, having oscillated between a 24-hour high of $64,025 and a low of $59,678. Trading volume has risen by 7% as traders remain vigilant for a potential bottom.
Analysts are forecasting a possible price correction to $55,000 before the Bitcoin halving, suggesting a forthcoming opportunity for investors to buy the dip. Concurrently, Bitcoin futures and options have shown a slight decrease in open interests over the past day, with total futures open interest dropping by over 3% to $30.63 billion, reflecting ongoing selling pressure.
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