Bitcoin Sees $751 Million Institutional Outflow, Raising Recovery Concerns

Bitcoin recently experienced one of its most challenging weeks of 2025, with institutional investors pulling out $751 million from the market. This marks the third consecutive week of negative flows, raising concerns about the sentiment among large investors. Despite maintaining modest net inflows for the year, the sharp decline suggests growing caution among institutional players. With political volatility and market pressure on the rise, traders are now questioning whether Bitcoin can recover or if institutional investors are preparing to exit the market.

Bitcoin investment products saw a significant outflow of $751 million from institutional investors last week, contributing to a total loss of $795 million across the digital asset space. According to the latest report, cumulative outflows since February now total $7.2 billion, erasing nearly all year-to-date inflows. This recent pullback has reduced 2025’s net flows to just $165 million, a significant drop from the bullish levels seen two months ago. The selloff indicates that institutions are reducing their exposure, possibly due to macroeconomic uncertainty, profit-taking, or shifting risk appetites. James Butterfill, Head of Research, described this as one of the largest pullbacks of the year. Even bearish Bitcoin products, which typically benefit during downturns, were not spared, losing $4.6 million.

The broader market is also struggling; Ethereum saw $37 million in institutional outflows, while Solana, Aave, and SUI also posted losses. This widespread exit adds to fears that institutions are reassessing their crypto allocations as global financial conditions remain volatile. Ongoing news about economic instability is further fueling institutional anxiety. Let’s examine Bitcoin price predictions to understand how these developments impact the price of Bitcoin.

The 1-hour BTC/USDT chart shows the price testing key support around $83,500 following a rejection from the $86,500 resistance zone. Price action has been range-bound, with multiple failed attempts to break out above resistance. The current dip finds the price near a prior consolidation zone, suggesting potential support interest. The RSI reads 36.54, approaching oversold levels, which historically marked short-term bottoms. The MACD shows two recent death crosses and bearish histogram momentum, aligning with the ongoing pullback.

However, past oversold RSI readings around this level have led to strong recoveries, making this zone critical for bulls to defend. If support holds, Bitcoin may attempt another leg up toward $85,500–$86,500. A breakdown below $83,000 could expose downside risk toward $80,000 and $78,500 support zones. Despite current bearish momentum, Bitcoin remains within a broader consolidation structure. Traders should watch for a bullish divergence or MACD reversal to signal a potential recovery. Until then, caution is warranted near critical support.

Bitcoin’s $751 million outflow week is a clear signal that institutions are nervous. Whether it’s profit-taking or macro-driven caution, big money is stepping back for now. BTC still sits above key support, but momentum is weak and confidence is shaky. A bounce is possible if technicals align and sentiment stabilizes, but until then, every level lower invites more selling. Crypto news around institutional shifts and liquidity trends will be key to watch. Unless inflows return soon, the question shifts from “how high can BTC go?” to “how deep is the pullback going to get?”