Spot Bitcoin ETFs have entered another troubling trend, recording outflows for a week in a row. These outflows coincided with a decline in the price of Bitcoin, suggesting that the sell-offs may be directly related to institutional sell-offs, as well as miner sell-offs. The funds have now completed seven consecutive days of outflows, so this report takes a look at what happened the last time outflows were this high.

Bitcoin Spot ETFs Lose Money for 7 Days in a Row

According to data from Coinglass, Spot Bitcoin ETFs have recorded their 7th consecutive day of outflows. An captivating fact about the outflows is that they averaged about $100 million per day, which led to about $1.2 billion being withdrawn from funds.

While the current trend is concerning, this is not the first time that Spot Bitcoin ETFs have bled for a full week. Between April and May 2024, the funds bled for 7 consecutive days, even more than they are currently bleeding. Additionally, the largest single-day outflow was recorded during that same month, when the funds lost $563.7 million on May 1.

This past trend may provide some insight into what is happening now and what may happen in the future. In May, after seven consecutive days of outflows, the funds were expected to see a surge, registering inflows for two days before seeing outflows again.

However, this was only the beginning of the recovery as institutional investors began to throw their hats into the ring again. Starting on May 13, money inflows moved quickly, recording 19 consecutive days of inflows and setting a fresh record.

If the previous trend is anything to go by, then Spot Bitcoin ETFs could see a trend reversal soon, especially as Bitcoin prices recover. A repeat of May’s trend would trigger inflows of epic proportions, driving prices higher as demand increases.

BTC on charts

Bitcoin’s price, despite falling to $60,000, is still well above its 200-day moving average of $50,613. This suggests that the price remains bullish in the long term, especially as investors prefer to hold rather than sell.

However, on shorter time frames, the pioneering cryptocurrency has performed poorly, falling below the 50-day and 100-day moving averages of $65,403 and $63,928 respectively, which is crucial for the digital asset’s short- and medium-term performance.

However, on the daily chart, Bitcoin is starting to show some bullish trends. Its daily trading volume increased by 35%, and its price has once again rebounded above the $61,000 resistance.

Featured image created with Dall.E, chart from Tradingview.com