US spot Bitcoin exchange-traded funds recorded heavy net outflows on July 1, according to data from SoSoValue. Total net outflows reached $294.62 million, extending the withdrawal streak to 10 consecutive trading sessions.
BlackRock’s IBIT posted the largest net outflow at $219.41 million. Fidelity’s FBTC recorded net outflows of $51.02 million, Ark Invest and 21Shares’ ARKB lost $39.9 million, and Grayscale’s GBTC saw $62.79 million leave the fund. By contrast, Morgan Stanley’s MSBT drew $29.81 million in net inflows, while Grayscale Mini Bitcoin added $36.33 million.
The 10-day streak of outflows has surpassed the $1.2 billion mark. This is significant, as spot Bitcoin ETFs are considered the institutional demand channel. The heavy redemption shows that institutional investors are willing to cut back during periods of continued downtrend.
Why ETF Outflows Matter
The ongoing withdrawals indicate a conservative institutional sentiment. Pressure has been increasing since Bitcoin’s previous surge, with uncertainty around spot Ethereum ETFs, anticipated Mt. Gox distributions, and a risk-off macro environment.
Macro conditions are also not favorable. The dollar is up, and risk assets like cryptocurrency are falling amid expectations that US rates may remain elevated. June was Bitcoin’s worst month in four years, down 20%. US spot Bitcoin ETFs bled a record $4.5 billion for the month, with BlackRock’s IBIT alone accounting for $3.55 billion.
Macro headwinds include the Warsh Fed nudging the rate path toward holds, even hikes, while the dollar sits near yearly highs and gold keeps sliding.
At press time, Bitcoin trades at $61,630 with an increase of 1.94% in the last 24 hours.
Crypto Fear and Greed Index
According to CoinGlass, the Crypto Fear and Greed Index stands at 22 in the fear territory. The index has improved from 10 on July 1, when BTC was trading at $58,410.60. Bitcoin Dominance stands at 57.9% with a decline of 0.14%.
Technical Structure
BTC rebounded from a 21-month low of $57,800 earlier this week. However, BTC maintains a bearish bias, as it remains below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $66,010, $69,816, and $75,777, respectively.
The Relative Strength Index (RSI) at 44.87 stays below the midline, suggesting subdued buying pressure, while the Moving Average Convergence Divergence (MACD) shows a positive reading with the MACD line above its signal and above zero, indicating slightly improving momentum.
On the upside, immediate resistance is placed at $64,004, ahead of the 50-day EMA at $66,010. Further up, the 100-day EMA at $69,816 and the 200-day EMA at $75,777 align as successive resistance levels.
On the downside, a failure to reclaim the $64,000 level would leave BTC vulnerable to renewed selling pressure targeting the key psychological level at $55,000.
Key Takeaways
- Record ETF liquidations reveal institutional capital executing a massive risk-off retreat. With macro headwinds keeping interest rates high, this unprecedented selling pressure strips away Bitcoin’s institutional safety net, leaving the current market rebound highly vulnerable to further downside.
- Some investors are rotating between ETF products rather than exiting the category completely, as seen by inflows into Morgan Stanley’s MSBT and Grayscale Mini Bitcoin.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Cryptocurrencies are risky assets that may result in total loss. Always conduct your own research (DYOR) before making any investment decisions.