Bitcoin is back to trading at levels seen in early February: close to $60,000. But this time the reaction from the institutions is completely different.
Today, they are selling aggressively into the dip, ETF flows show, unlike in February, when selling slowed as prices fell to near $60,000. It marks a fundamental shift in how institutions view bitcoin at this level.
The 11 US-listed spot bitcoin ETFs saw net outflows of $1.72 billion last week. It’s the biggest single-week redemption in over a year, according to data source SoSoValue. Back in the first week of February, when BTC crashed to nearly $60,000, the ETFs only bled $318 million.
The bearish contrast does not end there.
Outflows have accelerated for four consecutive weeks, rising from $1 billion in the week ending May 15 to $1.26 billion, then $1.26 billion and $1.42 billion in the following two weeks, and most recently $1.72 billion.
In February it was different. The week BTC hit $60,000, $318 million was lost. But the two weeks before, $1.33 billion and $1.49 billion had left. Essentially, as the price crashed, the outflow slowed. Buyers showed up.
This time the trend is reversed: As the price fell, the outflow accelerated. Week after week, faster redemptions and no institutional bid below them.
The pattern tells a bearish story and suggests that the bulls may struggle to hold the $60,000 support. At the time of writing, bitcoin was changing hands close to $62,000.
