Spot Bitcoin ETF Outflows 'Are No New Thing,” But the Recent Negative Trend Has Caused Quite a Frenzy in the Industry

A market expert has delved into the subject, providing insights about the pessimistic development of the products and price effects.

Recent outflows from spot Bitcoin exchange-traded funds (ETFs) have sparked discussions about their potential impact on BTC price movements. In response, Dean Crypto Trades, a well-known market expert and investor, has highlighted a trend of outflows from the spot Bitcoin ETFs, linking it to the recent fluctuations in Bitcoin prices.

According to Dean Crypto Trades, this development showcases the dynamic nature of the cryptocurrency market, where rapid price fluctuations have instilled a risk-averse sentiment among investors, both institutional and retail.

Highlighting the matter further on the X (formerly Twitter) platform, the market expert stated that the persistent withdrawals from the products are “nothing new.” He went on to point out earlier outflows observed in the period following the funds' launch in January this year.

The expert noted that there have been several outflow streaks of $500 Million and above since the products began trading. During this time, BTC has managed to recover strongly, with prices fluctuating between the $50,000 and $70,000 level.

Observing past trends, Dean highlighted that the spot BTC ETF withdrawals tend to follow BTC’s price performance rather than the other way around. According to Dean's analysis, the products typically experience negative sentiment during periods of sharp price decline and positive sentiment during periods of price growth.

This analysis aligns with the observation of outflows from the products on the last trading day of the week, which amounted to millions of dollars. During the same period, the price of BTC experienced a downward movement, dropping from the $56,800 level to $52,850.

According to Farside Investors, a London-based investment management firm, the funds suffered a loss of over $170 million after the market closed on Friday. At the same time, several funds, including those from Fidelity, Bitwise, Grayscale, Ark Invest, and Valkyrie, recorded outflows of $85 million, $14 million, $52 million, $7.2 million, and $4.6 million, respectively, while other asset management company funds had no inflows.

Meanwhile, Bitcoin whales have been accumulating BTC, with nearly 2,900 BTC moved in the past few days despite the recent price decline. According to Lookonchain, an on-chain data tracker, BTC whales have been acquiring the crypto asset since September 1 and 3.

Over the period, data from the tracker shows that the whales have purchased 2,814 BTC, valued at $157.3 million at an average price of $55,887 from Binance, the world’s largest cryptocurrency exchange.

Notably, the stash of BTC was being moved by three distinct unknown wallet addresses—"bc1qg32kay34," "bc1qd565," and "36LMbBpvUHN." This accumulation could indicate renewed optimism toward Bitcoin, as whale movements are often considered a bullish signal for a digital asset.

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