Spot Bitcoin ETFs have entered another troubling trend, seeing outflows for a week in a row. These outflows have coincided with a drop in Bitcoin's price, suggesting the sell-off may be directly related to institutional selling as well as miner selling. These funds have now completed seven consecutive days of outflows, so this report will cover the last time outflows were this high.
Spot Bitcoin ETF loses money for 7 consecutive days
According to data from Coinglass, the spot Bitcoin ETF has seen outflows for seven consecutive days. An interesting fact about the outflows is that they average about $100 million per day, and about $1.2 billion has been withdrawn from the fund so far.
Previous trends may give us an idea of what is happening now and what may happen next. In May, these funds rose after seven consecutive days of outflows, and saw inflows for two consecutive days, followed by outflows.
However, this was only the beginning of the recovery, and institutional investors began to participate again. Starting from May 13, capital inflows were rapid, with inflows for 19 consecutive days, setting a new record.
If previous trends are anything to go by, then a spot Bitcoin ETF could soon see a turnaround, especially as Bitcoin prices recover. A repeat of May’s trend would trigger epic inflows, which would drive prices higher as demand grows.
BTC Chart
Despite the drop to $60,000, Bitcoin price is still well above its 200-day moving average of $50,613. This suggests that prices remain bullish in the long term, especially if investors choose to hold rather than sell.
However, on the shorter timeframes, the cryptocurrency has underperformed, falling below its 50-day and 100-day moving averages at $65,403 and $63,928, respectively, both of which are important for the digital asset’s short- and medium-term performance.
However, looking at the daily chart, Bitcoin is starting to see some upside. Its daily trading volume is up 35%, and the price has once again broken through the $61,000 resistance level.
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