Massive $635M Exodus from Bitcoin ETFs as Cryptocurrency Dips Below $80,000
Wednesday witnessed $635 million flowing out of Bitcoin ETFs, marking the steepest decline since the end of January, with BlackRock's IBIT spearheading withdrawals as investors locked in gains while BTC fluctuated around the $80,000 mark.
Exchange-traded funds focused on spot Bitcoin in the United States experienced their most significant single-day withdrawal since January, occurring as Bitcoin fought to maintain its position above the $80,000 threshold following a dramatic recovery from the lows recorded in April.
According to data provided by SoSoValue, Bitcoin (BTC) exchange-traded products saw withdrawals totaling $635.2 million on Wednesday, coming on the heels of $233.3 million in redemptions during the prior trading day.
The weekly redemptions currently total $841.2 million, positioning these investment vehicles for their initial week of net withdrawals following a streak of six straight weeks that brought in approximately $3.4 billion in net inflows.
This market turbulence coincides with Bitcoin's persistent oscillation near the $80,000 price point, consistently falling beneath and then recovering the threshold, as market observers highlight profit-taking dynamics in the wake of a 37% price surge from the lows seen in April.
The biggest daily outflow since late January
These recent withdrawals represent the most substantial single-day redemption from Bitcoin ETFs since Jan. 29, a date when these investment products experienced approximately $818 million in outflows within a 24-hour period.
BlackRock's iShares Bitcoin Trust (IBIT) topped the withdrawal list with approximately $285 million in redemptions, based on information from Farside. The ARK 21Shares Bitcoin ETF (ARKB) and Fidelity Wise Origin Bitcoin Fund (FBTC) came in second and third place with $177 million and $133.2 million in outflows, respectively.
Morgan Stanley's Bitcoin Trust ETF (MSBT) reported zero withdrawals on Wednesday and brought in approximately $6 million in fresh capital on Tuesday. Since making its market debut on April 8, this fund has yet to register any redemptions and has gathered approximately $256 million in total assets.
Altcoin funds: Ether joins the selling, Solana and HYPE lead inflows
The bearish momentum has extended into Ether (ETH) exchange-traded products, which experienced $36.3 million in redemptions on Wednesday, pushing the weekly total to approximately $184 million in outflows to date.
Investment products tracking Solana (SOL) bucked the negative trend with approximately $6 million in new investments, bringing the week-to-date accumulation to $51.6 million. Hyperliquid (HYPE)-focused funds attracted inflows of $1.36 million during their Tuesday launch, elevating total net inflows to $2.52 million.
Bitcoin's price instability emerged as the cryptocurrency challenged the 200-day moving average positioned near $82,400 following a 37% upward movement from April's lowest points, a technical threshold that has traditionally served as resistance during previous bear-market recoveries, according to a note from CryptoQuant shared with Cointelegraph.
The research team highlighted increasing profit-taking activity, heightened unrealized profits and diminishing demand in the US spot market as indicators that upward momentum could be losing steam. Blockchain data indicates possible price support around $70,000 should a more pronounced downturn materialize, according to CryptoQuant's analysis.
This level has historically acted as a key resistance-turned-support band during bear markets, as it represents the average cost basis of short-term traders and the level at which unrealized profit margins compress back toward zero, reducing the incentive for further selling.
CryptoQuant report