Bitcoin ETFs See $365M Outflows, BTC Tests Key Support

Bitcoin (BTC) has experienced a significant setback, with U.S.-based spot Bitcoin ETFs witnessing net outflows totaling $365 million. This development has raised concerns about the cryptocurrency's recent bullish momentum and its ability to maintain key support levels. At the time of writing, BTC is hovering near $98,000, after a sharp decline from recent highs, and is currently testing an important support zone around $94,000.

The substantial ETF outflows are indicative of investor caution, particularly among institutional players who have been major contributors to Bitcoin's upward trajectory in recent months. While some outflows are expected as part of market cycles, the consistent withdrawals raise concerns about whether Bitcoin's latest rally is losing momentum. The largest contributor to the outflows was Grayscale's GBTC, with a net outflow of $98.35 million, followed by Fidelity's FBTC and BlackRock's IBIT, which recorded redemptions of $88.24 million and $112.05 million, respectively. The widespread exits suggest that traders are either taking profits or shifting funds to other investment options amid uncertain macroeconomic conditions.

Despite the bearish sentiment, Bitcoin's long-term fundamentals remain strong. The market is anticipating the upcoming halving event, which historically acts as a catalyst for price appreciation. Moreover, ETF inflows and outflows tend to fluctuate based on broader market conditions, meaning this downtrend may not necessarily signal a prolonged bearish phase. In the short term, BTC needs to maintain support above $94,000 to avoid deeper corrections. A breakout above $100,000 could reignite bullish momentum, bringing Bitcoin back into an upward trend. For now, all eyes remain on ETF flows and whether institutional demand can rebound in the coming days.