Bitcoin ETFs Outflows Hit $1.3 Billion in Two Weeks Following The Crypto Market Slump

The United States Spot Bitcoin exchange-traded funds (ETFs) recorded approximately $1.3 billion in outflows in the last two weeks. This massive outflow coincides with the bearish trend in the general crypto market.

However, analysts remain optimistic about Bitcoin's potential despite the bearish sentiment.

Bitcoin ETFs Record Massive Outflows as Entire Crypto Market Slumps Due to Several Bearish Factors

The recent Spot Bitcoin ETF outflows are the worst since April 2024. Historically, the Bitcoin ETFs recorded massive outflows of $1.2 billion between April 24 and early May.

According to data from Farside Investors, the ETFs have recorded $1.298 billion in outflows within the last two trading weeks. Grayscale still leads the outflows with $517.3 million within this timeframe.

Comparatively, BlackRock's Bitcoin ETF, IBIT, was the only fund to post positive results within this period, amassing $43.1 million in inflow within the last two weeks.

Meanwhile, the current outflows coincide with Bitcoin's recent slump. Bitcoin trades at $60,728, with a 3.5% decline in the last 24 hours and a nearly 17% drop from its all-time high.

The analytical platform TokenSuite shared some reasons behind Bitcoin's slump. According to the analysts, Mt.Gox's supposed plans to distribute 143,000 BTC to its creditors in July must have contributed to the negative sentiment.

Investors fear the distribution will add massive selling pressure to Bitcoin, as most creditors may dump their BTC tokens once they receive them.

Also, miners' sales of BTC increased to approximately $1.8 billion BTC in the first three weeks of the month, adding selling pressure on Bitcoin. In addition, the massive Bitcoin ETF outflows of nearly $1 billion recorded since June 15 contributed to the BTC price slump.

Furthermore, the German Government sold over $200 million worth of BTC, adding to the pressure and massive forced liquidations.

Jonathan de Wet, the Chief Investment Officer at crypto trading platform ZeroCap, said the market onslaught will continue. The expert predicted that Bitcoin would drop to a key support level of $57,000 in the coming weeks.

However, despite the price slump, de Wet believes Bitcoin and Ethereum have shown remarkable resilience compared to other market assets.

More Crypto Analysts Share Forecast on Bitcoin's Possible Price Moves Amid Decline

Analysts are optimistic that Bitcoin will rebound after the ongoing downturn. Popular market analyst Willy Woo says the ongoing retracement will persist for a few more weeks before Bitcoin recovers.

In a June 24 analysis, Rekt Capital said Bitcoin is trading over seventy days post-halving, a phase he believes will precede a profound rally. According to the analyst, after the halving in 2016, Bitcoin entered an uptrend in this phase.

Rekt Capital says Bitcoin is in the re-accumulation range and will encounter a prolonged retracement before resuming its uptrend. He measured the retracement phase using a price chart, showing the Bitcoin has recorded an average retracement of -22% from all its past cycles.

Further, the analyst revealed that the average BTC retracement lasts 42 days. BTC's current pullback is -16%, which Rekt Capital believes is not an average one yet. Therefore, he remains bullish on Bitcoin's chances for a recovery ahead.

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