📰 ETF inflows stop for nine straight days—why did Bitcoin suddenly see a $119.69M outflow?
The “nine-day $30 billion” Bitcoin ETF inflow myth came to an abrupt end. On Wednesday, there was a net outflow of $1.49 billion. At the same time, U.S. spot ETH ETFs saw a net outflow of $596 million, with Fidelity’s FETH fund leading the way with a $266 million outflow. Does this signal that capital is pulling out of the crypto market? What does it mean for BTC and ETH?
Why this news matters
The shift in ETF fund flows is significant. First, the nine-day streak of ETF inflows coming to a halt suggests investors are re-assessing the risk-reward profile of crypto assets. Second, ETH ETF outflows are negatively correlated with BTC, which typically indicates market sentiment is cooling. Most importantly, the outflows occurred at key price levels for both BTC and ETH—BTC at $84,868 and ETH at $2,686. These are both major support levels in the recent period. This implies that capital may be taking profits or avoiding risk.
Market impact
In the short term, a $119.69M BTC ETF outflow could cause BTC to test support below $84,868.08. If it breaks, the bearish signal would be clear. ETH outflows would further increase pressure on the downside below $2,686.59. Over a longer horizon, if ETF outflows persist, they could trigger more aggressive sell orders and accelerate the decline. However, keep in mind that U.S. CPI is about to be released. If the data comes in below expectations, ETF capital could flow back in.
Trading outlook
💡 Bearish on BTC in the short term. If it breaks below $84,868.08, this outlook is invalidated. ETH also needs to watch the $2,686.59 line—holding it could allow ETH to continue moving sideways. Why is capital retreating now? Perhaps it’s because volatility in the crypto market is increasing.
$BTC $ETH #BTC #ETH
【Invalidation conditions】 If the Federal Reserve’s rate hike size exceeds expectations, this outlook is invalidated
This article has no project sponsorship, and the author does not hold any of the assets mentioned
⚠️ Not investment advice; predictions are for reference only
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