US Bitcoin ETFs are seeing the largest outflows since their launch. Institutional investors are withdrawing massive amounts of capital from the market, which is causing increasing selling pressure on the BTC price. But according to analysts, there is more to it.
Bitcoin price under pressure due to significant ETF outflows
US spot Bitcoin exchange-traded funds (ETFs) saw net outflows of $1.03 billion since December 11. On December 24 alone, investors withdrew $175 million from the funds.
On just two days, December 12 and 17, inflows of $49.1 million and $457.3 million respectively were recorded. On all other trading days, money flowed out.
Because ETFs are mainly used by professional parties, analysts assume that the majority of these capital flows come from institutional investors. They often use these regulated exchange products to gain exposure to crypto without managing the underlying tokens themselves.
Ethereum (ETH) is also affected. The ETH ETFs have recorded minor inflows on only one day (December 22) since December 11. A total of $770.3 million has flowed from Ethereum funds. Given the relatively smaller assets under management, the impact there may be even greater.
The US is losing its purchasing appetite, while Asia is buying more
At the same time, the so-called Coinbase Premium Index shows a persistent negative trend. This indicator measures the price difference between BTC on the American exchange Coinbase and international exchanges such as Binance. The index has been in the red for weeks. This means that, on average, American investors are less willing to buy Bitcoin than investors elsewhere in the world.
A negative premium indicates weak buying pressure from the US, which is worrying. Historically, US demand has been a driving force behind BTC price increases.
BTC recovery possible after this outflow
Yet there is also hope, according to analyst Gordon. He sees the recent outflow as a possible sign of recovery. On X he shares a chart of the 30-day moving average of ETF flows. According to him, a recurring pattern is visible. “The last time Bitcoin ETF outflows were this deep, there was a sharp reversal,” he said.
Source: https://newsbit.nl/vs-grootste-bitcoin-verkoper-etf-beleggers-trekken-massaal-geld-terug/
