bitcoin has returned to trading at the levels observed at the beginning of February: close to $60,000. But this time, the response of the institutions is totally different.
Today, they are selling aggressively on the dip, ETF flows indicate, unlike in February, when sales slowed as prices fell to near $60,000. That marks a fundamental shift in how institutions view Bitcoin at this level.
The 11 US-listed spot bitcoin ETFs recorded net outflows of $1.72 billion last week. It’s the largest single-week refund in more than a year, according to data source SoSoValue. In the first week of February, when BTC fell to almost $60,000, ETFs bled just $318 million.
The bearish contrast does not end there.
Capital outflows have accelerated for four consecutive weeks, going from $1 billion in the week ending May 15 to $1.26 billion, then $1.26 billion and $1.42 billion in the following two weeks, and most recently to $1.72 billion.
In February it was different. The week BTC hit $60,000, $318 million left. But in the previous two weeks, $1.33 billion and $1.49 billion had gone. Essentially, as the price plummeted, capital outflows slowed. The buyers showed up.
This time, the trend has reversed: as prices fell, capital outflows accelerated. Week after week, faster refunds and no institutional offers below them.
The pattern tells a bearish story and suggests that the bulls may have a difficult time holding the $60,000 support. At the time of writing, about $62,000 of bitcoin changed hands.
