After falling from its all-time high of $123,000, Bitcoin is now facing heavy selling pressure. The price has slipped below $114,000, marking a sharp 8% decline. This recent drop is largely being driven by institutional investors, as Bitcoin ETFs have recorded outflows for the fourth straight day, losing nearly $1.5 billion in the process.
This recent trend is beginning to raise real concerns about whether the current bull market is over..
Bitcoin ETF See $1.5 billion in Outflow
On the very first day of the month, they saw a sharp outflow of $812.3 million. Since last Thursday, U.S.-listed Bitcoin ETFs have lost over $1.5 billion, marking their biggest outflow streak since April.
Some of the biggest outflows came from top funds like Fidelity’s FBTC, Ark Invest’s ARKB, and BlackRock’s IBIT. On Tuesday alone, these three lost more than $175 million. Just weeks ago, they were leading in inflows, showing how quickly investor confidence can flip.
Adding to the pressure, Bitcoin’s price has dropped more than 1% and is now trading around $114,000.
Why Are Investors Pulling Out?
The recent pullback from Bitcoin ETFs is mainly driven by fears of stagflation in the U.S. economy, a mix of high inflation and slow growth. A new report from ISM showed some worrying signs: rising prices, fewer new jobs, and weaker trade activity.
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If the economy weakens but inflation stays high, the Federal Reserve might be stuck, unable to cut interest rates, something markets had hoped for.
With this uncertainty growing, investors are becoming more careful. As a result, Bitcoin ETFs are facing heavy outflows. Even U.S. tech stocks felt the pressure, with the Nasdaq dropping by 0.7% as investors pulled back.
Ethereum ETFs Show Signs of Recovery
While Bitcoin ETFs continue to see money flowing out, Ethereum ETFs are starting to recover. After two days of losses, Ether-based funds saw a turnaround on Tuesday, bringing in over $73 million.
This small comeback follows a much bigger inflow on Monday, when Ethereum funds pulled in around $465 million. A key reason behind this shift seems to be new guidance from the SEC, suggesting that Ethereum staking may not be treated as a securities offering in some cases.
On top of that, some market watchers are still hopeful that the Federal Reserve could cut interest rates later this year.
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FAQs
Bitcoin fell 8% to $114K due to $1.5B ETF outflows over 4 days and stagflation fears, marking the biggest institutional withdrawal since April.
Stagflation is an economic condition characterized by high inflation and slow growth. This uncertainty pushes investors away from risky assets like Bitcoin, leading to heavy outflows from Bitcoin ETFs and a price drop.
Not necessarily – while ETF outflows raise concerns, some analysts view this as a healthy correction after Bitcoin’s rally to $123K ATH.
