Crypto Market Turmoil: Record $2.9B ETP Outflows as Bitcoin ETFs Bleed

The crypto market has witnessed significant shifts this week, with crypto ETP outflows surging to a record $2.9 billion. This massive outflow is the largest in the sector's history and has been fueled by several economic factors, including security threats and shifting policies. Market liquidations have also surged, affecting traders and strengthening bearish sentiment.

Bitcoin ETF losses have seen a significant increase, with investors pulling $1.3 billion out of BlackRock's iShares Bitcoin Trust alone. This is the largest weekly loss recorded since the ETF's launch. The Bitcoin Spent Output Profit Ratio (SOPR) has hit 0.95, indicating that short investors are selling at a loss. Additionally, Bitcoin's open interest has reached a 6-month low, which could potentially signal a market bottom.

As the market continues to evolve, investors are monitoring key signals for stability or further turbulence. The coming days will reveal whether the market rebounds or experiences more downward pressure. Short-term volatility is expected to persist, but strong Bitcoin support could trigger a rebound. Investors should proceed carefully in this volatile market, diversifying their portfolios, managing risks, and tracking on-chain data to increase their chances of success.