Bitcoin ETFs Bleed $2.7B as GDP Forecast Drops

Bitcoin ETFs experienced a significant setback this week, with a record $2.7 billion in outflows, signaling a potential bear market ahead. Corporate Bitcoin holders are feeling the pinch, and liquidations are surging across the crypto industry. Meanwhile, the Federal Reserve Bank of Atlanta forecasted a 1.5% decrease in US GDP for Q1 2025, further fueling economic pessimism.

The US spot Bitcoin ETF market, which had grown rapidly in its first year, is now facing massive outflows. This week, it reached a new record for outflows, approaching $1 billion. With most of the week's data now available, it reflects the growing concerns among institutional investors. Over the past week, Bitcoin ETFs had $2.7 billion in net outflows, the largest weekly net outflow since March 2024.

Fears of a bear market are spreading throughout the crypto space, even affecting corporate Bitcoin holders. Strategy (formerly MicroStrategy) recently spent nearly $2 billion on BTC, but this did not help its stock price. Today, trade data shows that it has fallen 57% since last November. Metaplanet fell 54% from its peak, and Tesla has also been declining. All these firms hold substantial amounts of Bitcoin.

Bitcoin may be feeling the brunt of this potential bear market, but liquidations are spiking across the crypto sector. According to the latest data, nearly $1 billion was liquidated in the last 24 hours. Traders are currently showing Extreme Fear, the lowest level since the 2022 FTX collapse.

A few prominent figures are looking at the brighter side. Michael Saylor urged the community not to panic sell, telling his followers to “sell a kidney if you must, but keep the Bitcoin.” Arthur Hayes, former CEO of BitMEX, amended his recent prediction that BTC will drop and bounce back. However, he maintains that Bitcoin will rebound after a bear market.

Dark economic portents have been present for a few days now, and a market correction seems inevitable. This afternoon, the Federal Reserve Bank of Atlanta claimed that the US GDP is on track to decline by 1.5% in Q1 2025. Even a disproven rumor could cause a lot of problems. Overall, the current macroeconomic factors point towards a short-term