Bitcoin News Today: Bitcoin ETFs Lose $87M as Outflows Weigh on Crypto Sentiment

Bitcoin's ongoing decline is showing signs of being "different from the past," as it unfolds without the backdrop of a major economic crisis but amid continuous fund outflows from spot ETFs according to analysis. This divergence from historical bear markets has raised questions among investors and analysts, who are closely monitoring how the cryptocurrency reacts to the latest shifts in institutional sentiment. The decline comes at a time of growing uncertainty, with Bitcoin ETFs recording $87.77 million in net outflows last week.

Ethereum has not been spared either, with Ethereum ETFs witnessing $75 million in outflows on Friday alone. These outflows have contributed to broader market jitters, as traders assess the implications for institutional adoption and price stability. Meanwhile, XRP stands out as an anomaly, with its spot ETFs experiencing 15 consecutive days of inflows, totaling 897 million in inflows.

The divergence in ETF flows has been amplified by broader market dynamics, including the Federal Reserve's upcoming policy decisions and the mixed performance of other asset classes. While Bitcoin's price remains supported by improving technical indicators such as the MACD and RSI, the cumulative effect of ETF outflows has kept the cryptocurrency in a tight trading range near 90,000.

How Markets Reacted

Bitcoin's ETF outflows have been a key factor in its recent price behavior, with institutional investors showing caution ahead of the Fed's next move. Last week, Bitcoin ETFs saw outflows totaling $87.77 million, though they rebounded slightly by Friday with nearly $55 million in inflows according to data. Ethereum ETFs also faced outflows of $75 million and $42 million on Friday and Thursday respectively, signaling a shift in investor appetite.

The mixed sentiment is reflected in technical indicators. Bitcoin's RSI has climbed above 50, and the MACD shows a buy signal, suggesting that buyers are beginning to regain control.

Ethereum, too, is showing similar signs of recovery, with its price rebounding above $3,100 and RSI crossing the 50 threshold. XRP, on the other hand, is experiencing sustained inflows, which have helped the token rebound above $2.10 and maintain bullish momentum.

What Analysts Are Watching

Analysts are keeping a close eye on the ongoing outflows and how they might influence the broader market trajectory. The Fed's upcoming policy decisions are seen as a critical factor that could either ease or exacerbate current conditions. A recent cut of 0.25 percentage points was tempered by cautious messaging from the central bank, which emphasized that further easing would be gradual. This has kept Bitcoin and other risk assets in a holding pattern, waiting for clearer signals.

The impact of ETF inflows and outflows has also been a focal point. While Bitcoin's ETF outflows have raised concerns, the cumulative inflows since their launch remain substantial, at $57.62 billion. For Ethereum, the situation is more nuanced, with $12.88 billion in cumulative inflows but recent outflows highlighting uncertainty. XRP, however, has seen consistent support from ETFs, which may indicate growing interest in altcoins as Bitcoin consolidates.

Retail participation has remained low, with limited enthusiasm for sustained upward momentum. This lack of retail buying pressure has kept the market sensitive to macroeconomic shifts, particularly in risk appetite. Analysts are also watching for signs of a broader shift in institutional capital allocation, especially as other sectors like utilities and consumer discretionary show inflows in traditional ETFs according to Seeking Alpha.

Risks to the Outlook

The current market environment carries several risks, particularly for Bitcoin. One of the key concerns is the potential for prolonged ETF outflows, which could undermine the price's ability to break out of its current range. If institutional investors continue to take a cautious stance, Bitcoin could struggle to gain traction ahead of major resistance levels, such as the 50-day EMA at $97,238 and the 200-day EMA at $103,953.

Ethereum faces similar challenges, with its ETF outflows compounding the volatility in its price action. The platform's technical indicators are showing positive signs, but these need to be supported by consistent inflows to sustain the bullish momentum. XRP's inflows provide a contrast, but its smaller market cap means it is more susceptible to sudden shifts in sentiment.

In the broader context, global macroeconomic factors-such as inflation data, U.S. employment figures, and central bank policy moves-will play a critical role in shaping the next phase of market activity. Investors are also keeping a close eye on India's economic outlook, where foreign portfolio investors have pulled out $1.6 trillion in 2025. While domestic institutional investors have offset some of the selling pressure, the overall trend remains a cause for caution.

What This Means for Investors

For investors, the current environment underscores the importance of managing expectations and risk exposure. The divergence between Bitcoin and Ethereum, as well as the mixed performance of ETFs, suggests that the market is still in a phase of consolidation. Conservative investors may want to focus on Bitcoin's relative stability and its position as a store of value, while those with higher risk tolerance could consider opportunities in altcoins like XRP, which are showing strong inflows.

The regulatory landscape is also evolving, with recent developments in the U.S. allowing crypto into 401(k) retirement plans according to CoinDesk. This could provide a new source of demand, particularly as ETFs become more accessible to a broader range of investors. Meanwhile, the Trump administration's anti-debanking executive order highlights the growing political support for crypto, which could influence long-term adoption trends.

In the short term, the focus will remain on ETF flows, macroeconomic data, and regulatory shifts. Investors should prepare for continued volatility, with the next key developments likely to come from the Fed's policy decisions and the performance of spot ETFs. For now, the market appears to be waiting for a catalyst that can align liquidity, risk appetite, and institutional demand in a way that breaks the current range-bound trading pattern.