Bitcoin News Today: Investor Panic Mounts as Bitcoin ETFs Bleed $1.17 Billion in Five Days

Bitcoin spot ETFs have entered a five-day losing streak, with outflows totaling roughly $1.17 billion, marking the longest such period in over four months. The recent exodus of funds has raised questions about the future trajectory of Bitcoin and whether the price is nearing a potential reversal. According to data from Farside Investors, Bitcoin ETFs saw outflows surge over fourfold from $125 million on Monday to $523 million on Tuesday alone. Ether ETFs were not spared either, with outflows doubling from around $200 million on Monday to $422 million the following day. These outflows came alongside an 8.3% drop in Bitcoin’s price and a 10.8% decline for Ether since last week.

Fidelity Investments led the outflow charge, with over $400 million in withdrawals from its Bitcoin and Ether funds. Grayscale Investments also experienced significant redemptions, with its Bitcoin Trust and Ethereum Trust ETFs seeing outflows of $116 million and $122 million respectively. In contrast, BlackRock’s iShares Bitcoin Trust ETF remained unaffected, with no outflows recorded on Tuesday, while its Ethereum Trust ETF saw modest withdrawals of just $6 million. These divergent performances highlight the varied investor responses to the recent price drop, with some institutions maintaining a more defensive stance.

The growing outflows have also triggered a shift in investor sentiment. The Crypto Fear and Greed Index, a widely followed sentiment indicator, flipped to “Fear” on Wednesday, recording a score of 44. This represents a stark contrast to the “Greed” sentiment that dominated the market for most of the previous month. While analysts have yet to issue broader commentary on the ETF outflows, some industry observers suggest that the redemptions reflect short-term profit-taking rather than a long-term abandonment of crypto. Ryan Park, an adviser at 21Rates, noted on X that “a few daily ETF outflows doesn’t mean traditional finance is abandoning crypto — that’s just folks using a simple way to hop on and off Bitcoin.”

Anthony Pompliano, a prominent crypto entrepreneur, has taken a more bullish stance on Bitcoin’s current valuation. Speaking on CNBC, Pompliano argued that Bitcoin is now oversold, citing technical indicators and historical seasonality patterns. He pointed out that the cryptocurrency has approached levels seen in the year following the 2024 halving and is likely entering a more active buying period. According to Pompliano, September and October historically represent strong quarters for Bitcoin, with an average gain of 85.42% in Q4 compared to just 6.02% in Q3. He also emphasized the potential impact of the Federal Reserve’s upcoming rate cut and increased institutional interest in Bitcoin treasury strategies as catalysts for a price rebound.

Despite these bullish signals, some analysts remain cautious. BitcoinHyper, a crypto analyst on social media, warned of a potential bearish trend after the asset broke key support levels. According to technical analysis, a continued decline could push the price toward $108,000, with a worst-case scenario near $108,000 if a larger bearish pattern materializes. Oversold indicators on the Daily RSI and Stochastic oscillator suggest a temporary rebound may be on the horizon, but the overall trend remains bearish. Ryan Lee of Bitget noted that Bitcoin’s price could remain in a range of $112,000 to $118,000 as market participants balance profit-taking with speculative activity.

Pompliano, while acknowledging the potential for a rebound, has tempered expectations. He does not believe Bitcoin will reach $1 million in this cycle but remains optimistic about its long-term prospects. His skepticism stands in contrast to Coinbase CEO Brian Armstrong, who has suggested that Bitcoin could reach $1 million by 2030. Pompliano highlighted the speculative nature of such forecasts and urged investors to focus on the broader macroeconomic factors and seasonal trends that historically influence the asset’s performance.

Source: [1] Bitcoin, Ether ETFs post almost $1B outflows as prices slide (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double) [2] Bitcoin Oversold as ETFs Post Biggest Outflow Streak in ... (https://cointelegraph.com/news/bitcoin-price-oversold-etfs-outflows-anthony-pompliano) [3] Investor Anthony Pompliano Says Bitcoin Is Pretty Oversold ... (https://dailyhodl.com/2025/08/21/investor-anthony-pompliano-says-bitcoin-is-pretty-oversold-outlines-catalysts-that-could-trigger-btc-to-come-back-alive/) [4] Bitcoin Faces Bearish Pressure as Analyst Warns of ... (https://www.financemagnates.com/trending/bitcoin-faces-bearish-pressure-as-analyst-warns-of-potential-drop-toward-108k/)