US Selling Pressure Slams Bitcoin ETFs: $408 Million in Outflows

Bitcoin (BTC) appears stuck at the $62,000 threshold today as selling pressure from institutional investors obscures its gains.

Critical data, such as the Coinbase Premium Index and ETF outflows, shows that US institutions are leading the sell-off.

Moreover, spot Bitcoin ETFs have witnessed notable outflows, with more than $408 million exiting the funds in the first week of October. This bearish market outlook has affected Bitcoin's overall performance in October.

Coinbase Premium Index Remains Negative Amid Increased Sell-Offs

According to CryptoQuant data, one clear indicator of Bitcoin's troubles is the negative Coinbase Premium Index. This index tracks the price difference between Coinbase and Binance for Bitcoin.

The index has stayed in negative territory in October, meaning that Bitcoin's price on Coinbase is lower than on Binance. This suggests that US institutions sell more Bitcoin than global retail buyers, exerting a stronger bearish momentum on the asset.Another on-chain analyst, Maartunn, shared this information.

Maartum noted, The Coinbase Premium has fallen to -$41, signaling strong selling pressure from US institutions."

The Coinbase Premium has fallen to -$41, signaling strong selling pressure from U.S. institutions pic.twitter.com/mjKcfIaJ0s

- Maartunn (@JA_Maartun) October 8, 2024

One X user believes the impact of this negative data will likely be felt tomorrow, not today."

Typically, positive readings from this index are followed by BTC price gains, while negative ones like the recent data signal declines. Concerns about a possible Bitcoin correction have grown, but the index is still negative.

Another vital factor to consider is the outflow from BTC ETFs in the US. Coinglass data shows that BTC ETFs saw net outflows of over $408 million in the first week of October.

This outflow suggests that US investors are withdrawing money from Bitcoin-related investments. In contrast, only around $260 million has flowed into these ETFs during the same period. This imbalance further points to a selling trend.

BlackRock, a major player in the ETF space, also recorded significant withdrawals recently. CryptoQuantreportedthat the company withdrew 256 BTC, marking the second-biggest outflow from BlackRock.

Sensitive Price Zone for Bitcoin

According to Glassnode's recent report, a tool called UTXO Realized Price Distribution (URPD) shows that Bitcoin is now in a delicate price zone.

This paints a picture of a market that rests on delicate ground, with a large volume of supply likely to be sensitive to the next major market move," said Glassnode.

URPD often measures how much Bitcoin was traded at different price levels.

In addition, Glassnode wrote that a large volume of Bitcoin has been traded at around $62,600, making it a fundamental level. So, if Bitcoin fails to hold this price and drops below $60,000, there could be further declines toward $52,000.

Conversely, if Bitcoin breaks the resistance at $64,000, it could quickly rally past $72,000. Meanwhile, most short-term holders are profitable, with a profit-to-loss ratio 1.2. This suggests that for every Bitcoin held at a loss, 1.2 are held in profit.

According to Glassnode, the ratio recently exceeded its usual range, signaling a potential shift in investor confidence. The ongoing selling pressure from US institutional investors continued to shape Bitcoin's market in October.

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