Massive US Spot Bitcoin ETF Outflows Shake Market Momentum

It seems like a major momentum that was intended to propel bitcoin’s spectacular surge above $80,000 is starting to fade. After collecting $3.29 billion from investors in March and April, eleven U.S.-listed spot bitcoin ETFs have begun to bleed capital.

The most significant single-day net outflow since January 29 occurred on Wednesday, when $635 million was removed from these funds by investors, as reported by SoSoValue. It was also not an isolated incident. With a loss of $1.26 billion over the last five trading days, the cumulative net inflows since the ETFs’ introduction in January 2024 have dropped to $58.5 billion, down from $59.76 billion a week ago.

Rising Inflation Fears

Rallies in Bitcoin have ceased. The surge that propelled prices from $65,000 to over $80,000 since last Wednesday has come to a standstill, with the 200-day simple moving average, which is located just over $82,000, acting as a point of no return. Even while Wall Street’s Nasdaq and S&P 500 stock index have mostly ignored these macro events, experts are linking the renewed inflation worries in the US to bitcoin’s 2% fall in the previous 24 hours, bringing the price down to $79,400. Wednesday saw both of these indexes reach fresh all-time highs.

Given the robust inflows in March and April, which were seen as triggers for more price increases, and the deteriorating macro picture brought about by increasing inflation in the United States, the $635 million outflow is not a figure that bulls can just brush off. The correlation between ETF flows and bitcoin is more complicated now than it was in the past, but it is still worth mentioning.

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