Crypto Market Turmoil: $480M Flees Bitcoin ETFs, What's Next for Investors?

Over the past two days, the cryptocurrency market has witnessed a significant outflow from spot Bitcoin ETFs, totaling over $480 million, as highlighted by CryptoRank, an analytic firm. This substantial withdrawal has sparked concerns among investors and analysts alike, as it coincides with a notable decline in the price of Bitcoin, which has dropped nearly 10% within the same timeframe.

https://twitter.com/CryptoRank_io/status/1770358710914740585

On March 18th, investors pulled out over $154 million from spot Bitcoin ETFs, marking the beginning of a downward trend. As per Spot On Chain, a crypto sleuth, the following day, March 19th, saw a record daily outflow of $326 million, exacerbating the situation further. This consecutive decrease in net inflow has raised questions about the stability and attractiveness of Bitcoin investments in the current market conditions.

The cumulative total net inflow after 47 trading days now stands at $11.68 billion, reflecting a significant decrease compared to the inflows observed in the preceding four trading days. Among the Bitcoin investment vehicles, BlackRock’s iShares Bitcoin Trust (IBIT) experienced the lowest net inflow, recording only $75.2 million in the past 17 trading days. This trend indicates a shift in investor sentiment towards Bitcoin ETFs.

https://twitter.com/spotonchain/status/1770304481600708871

During reporting, the Bitcoin price is $62,810.90, with a 24-hour trading volume of $71,270,463,594. Despite showing a 2.35% decrease in the last 24 hours, Bitcoin’s 1-Day Relative Strength Index (RSI) suggests that the cryptocurrency is currently in a neutral position.

Bitcoin/USD 1-Day price chart, Source: Trading view

However, the 1-day Moving Average Convergence Divergence (MACD) trading below the signal line indicates potential downward pressure on the price in the short term. This could lead to further depreciation if the trend persists.

Moreover, the 1-Day Know Sure Thing (KST) indicator shows a slight positive momentum, albeit insufficient to signal a strong bullish trend. This combination of technical indicators underscores the cautious sentiment prevailing in the market, with investors closely monitoring Bitcoin’s price movements and ETF flows for potential investment opportunities.