Bitcoin ETFs See $706 Million in Outflows as Market Sentiment Turns Bearish

Bitcoin ETFs See $706 Million in Outflows as Market Sentiment Turns Bearish

This week, U.S. spot Bitcoin ETFs experienced significant outflows, totaling over $706 million, as bearish sentiment pushed Bitcoin down to $53,304—its lowest point since August 5.

According to data from SoSoValue, 12 spot Bitcoin ETFs saw net outflows of $169.97 million on September 6, with Grayscale and Fidelity leading the decline. Fidelity’s FBTC was hit hardest, shedding $85.5 million and marking its seventh consecutive day of negative flows. Grayscale’s GBTC followed closely behind, with $52.9 million in outflows, pushing its total losses to over $20 billion since inception. Over the last eight days alone, GBTC has lost $279.9 million, continuing its outflow streak that began on August 27. Other notable losses include Bitwise’s BITB, which saw $14.3 million in outflows, ARK 21Shares’ ARKB at $7.2 million, Grayscale’s Bitcoin Mini Trust at $5.5 million, and Valkyrie’s BRRR with $4.6 million.

In contrast, BlackRock’s IBIT and WisdomTree’s BTCW managed to avoid any outflows over the past week, although neither saw fresh inflows in the last two days.

This investor hesitancy comes as Bitcoin’s price dipped to $52,690 before recovering slightly to $54,333 at the time of writing. Despite the recovery, BTC is down 3% over the past 24 hours, 10.4% from its weekly high, and 17.5% off its 30-day peak of $64,648 reached on August 26. Market turbulence worsened in the past 24 hours, with $113.86 million in Bitcoin positions liquidated, according to Coinglass.

The current Bitcoin decline aligns with broader concerns in the crypto market, often referred to as the “Redtember” slump. Investor confidence has been shaken by uncertainty around potential U.S. interest rate cuts, exacerbating market volatility. Data from Alternative’s Crypto Fear and Greed Index places investor sentiment at 23, its lowest in over a month, indicating high levels of anxiety and risk aversion.

Looking ahead, technical indicators suggest that Bitcoin could be nearing a “death cross,” where the 50-day and 200-day Exponential Moving Averages may soon cross—a pattern that historically signals major downward moves. In January 2022, Bitcoin dropped over 67% after forming a death cross.

Many analysts on social media platform X maintain a bearish outlook. Crypto analyst Pushpendra Singh Digital noted that Bitcoin is trapped in a falling wedge pattern. He suggested that a breakout above the $57,800 to $58,000 range could lead to a significant upward move. However, if Bitcoin drops below its support trendline at $54,000, further declines are likely.

Similarly, crypto analyst Nika, using a 1D BTC/USDT chart, highlighted Bitcoin’s ongoing struggle to break past the $58,000 resistance level. Failure to do so could result in a deeper correction, with key support levels at $45,000 and $42,000.