Bitcoin ETFs Bleed $900M: Is the Bull Market Taking a Breather? #CriptoNews

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• Bitcoin spot ETFs have recorded $921.4 million in net outflows, marking the fifth consecutive week of redemptions
• Total withdrawals over the five-week period amount to approximately $5.4 billion
• BlackRock’s IBIT experienced the largest outflow ($338.1 million), followed by Fidelity’s FBTC ($307.4 million)
• Analysts from 10X Research predict several months of sideways movement for Bitcoin, comparing it to the 2024 pattern
• The Bitcoin chart shows weakness with a flawed “High and Tight Flag” formation, indicating market indecision rather than bullish continuation

Bitcoin spot ETFs have experienced another week of significant outflows, with investors withdrawing over $900 million from the market. This marks the fifth consecutive week of redemptions, suggesting waning confidence among institutional investors in the world’s leading cryptocurrency.

According to data from Farside Investors, Bitcoin spot ETFs registered $921.4 million in net outflows during the past week. This brings the total withdrawals over the five-week period to approximately $5.4 billion.

BlackRock’s IBIT fund was hit hardest, with $338.1 million in net outflows. Fidelity’s FBTC followed closely behind with fund redemptions exceeding deposits by $307.4 million.

Other Bitcoin ETFs also saw moderate net outflows. Ark’s ARKB, Invesco’s BTCO, Franklin Templeton’s EZBC, WisdomTree’s BTCW, and Grayscale’s GBTC all recorded outflows between $33 million and $81 million.

Some funds experienced smaller outflows. Bitwise’s BITB, Valkyrie’s BRRR, and VanEck’s HODL all recorded minor net outflows not exceeding $4 million.

Grayscale’s BTC stood out as the only fund with positive performance. It managed to attract net inflows of $5.5 million, bucking the overall negative trend.

These high levels of withdrawals coincide with Bitcoin’s recent price correction. Over the last month, the cryptocurrency has experienced a price decline of 11.95%, reaching levels as low as $77,000.

Investors showing caution

During this downturn, institutional investors have shown caution. The total net assets of the Bitcoin spot ETFs have decreased by 21.70% to $89.89 billion, according to data from SoSoValue.

Analysts from 10X Research believe this may not be the end of the cycle. Instead, they predict several months of sideways movement for Bitcoin, based on past market performance.

Drawing comparisons to 2024, they argue that March has “historically been a turning point for asset prices.” Last year, this led to an eight-month consolidation period until Donald Trump won the election, which then sent prices to new highs.

Just another shakeout?

Bitfinex analysts told Cointelegraph that corrections like the current one are normal within a bull cycle. Despite some bearish fundamentals, “past trends suggest that this may be a shakeout rather than the start of a prolonged bear market.”

According to Markus Thielen, head of research at 10X Research, the current Bitcoin chart shows weakness. It doesn’t suggest that investors are rushing to buy the dip.

Bitcoin’s chart pattern resembles a “High and Tight Flag,” which is typically a bullish continuation pattern. However, Thielen explains that it shows signs of weakness because it comprises “two flags instead of a single, precise formation.”

This weakens the setup and indicates “market indecision rather than a straightforward bullish consolidation,” according to the analyst. He also noted that US spot Bitcoin ETFs are not lining up to buy the dip.

Data from Farside confirms that US spot Bitcoin ETFs have slowed their accumulation. A pattern seems to be emerging: when BlackRock’s IBIT has net inflows, most other funds have net outflows, and vice versa.

Although the week ended positively for most US funds, IBIT saw $96.2 million in net outflows. The other funds managed just $37 million in net inflows.

All US Bitcoin ETFs now hold 1.118 million BTC, or 5.325% of total supply. This represents a slowing in flows compared to the strong start to the year, which saw Bitcoin ETFs attract over $5 billion in investments.