US spot Bitcoin ETFs are experiencing significant outflows, with over $2 billion exiting the funds in the past week, marking the second-worst outflow streak ever recorded. This substantial withdrawal has put downward pressure on Bitcoin, causing it to briefly dip below $100,000 for the first time since May.
The recent outflow streak reached its sixth consecutive day on Wednesday, with $137 million pulled from the ETFs. Data from SoSoValue indicates that on November 4th alone, approximately $577.74 million was withdrawn from the 12 spot Bitcoin ETFs. Fidelity's FBTC experienced the largest single-day outflow, with $356.58 million leaving the fund. ARK 20Shares's ARKB followed with $128.07 million in outflows, and the remaining Bitcoin ETFs contributed a combined $93 million to the negative momentum.
This outflow trend extends to Ethereum ETFs as well. On Tuesday, nine spot Ether ETFs saw a combined loss of $219.37 million, contributing to a five-day outflow streak totaling $719 million.
Several factors are likely contributing to this shift in investor sentiment. Macroeconomic pressures, such as ongoing US-China trade tensions, are creating a risk-off environment. Uncertainty surrounding potential Federal Reserve interest rate cuts, coupled with strong U.S. labor data and persistent inflation, are also influencing investor decisions. External pressures, including rising yields, a strong US dollar, and continued geopolitical friction, further contribute to investor caution regarding crypto investments.
The outflows coincide with a period of volatility in the crypto market. Bitcoin briefly fell below $100,000, reaching a daily low of $99,076 before a modest recovery to around $102,000. This price dip triggered a broader sell-off across the crypto market, with the combined value of the market decreasing by 2%. Other cryptocurrencies, including Ethereum, Cardano, and Solana, also experienced declines.
Despite the recent outflows, it is important to note that Bitcoin ETFs experienced significant inflows earlier in the year. In September, US-listed spot Bitcoin ETFs attracted nearly $2 billion, signaling renewed institutional interest after a month of heavy redemptions in August. BlackRock's iShares Bitcoin Trust became the largest bitcoin ETF, with substantial inflows. These inflows reflect the growing role of ETFs in shaping Bitcoin's price trajectory, with daily net ETF flows becoming a strong determinant of Bitcoin's market direction.
However, the current outflow trend highlights the sensitivity of the crypto market to macroeconomic factors and investor sentiment. While some analysts remain optimistic about Bitcoin's long-term potential, expecting it to reach $100,000, the recent ETF outflows serve as a reminder of the inherent volatility and risks associated with cryptocurrency investments.
