The latest data from Farside shows that the US spot Bitcoin ETF saw outflows of $5.45 billion this week, indicating investors are becoming increasingly cautious.
The outflow of funds highlights the overall bearish sentiment in the market. The withdrawals occurred in the past week, with November 21 being a US holiday, and the lowest daily outflow appearing on Friday, November 19 at $1.059 billion.
The largest outflows on Friday were from Fidelity’s FBTC at $448,000, followed by Grayscale’s GBTC and ARK 21Shares Bitcoin ETF (ARKB) with outflows of $342,000 and $288,000 respectively.
BTC potential drops below $60,000
The significant outflow of funds from Bitcoin ETFs combined with weak trading activity has sparked speculation of a potential price drop.
Renowned cryptocurrency analyst Ali Martinez pointed out that Bitcoin has fallen below the +0.5σ MVRV price range of $67,890, which could trigger a correction to $54,930.
#Bitcoin has fallen below the +0.5σ MVRV pricing range of $67,890, which could trigger a correction to the average pricing range of $54,930. pic.twitter.com/zZvswgpUpS
– Ali (@ali_charts) June 19, 2024
MVRV is an indicator of the ratio between the market value of an asset and its realized value over time, showing the changing correlation.
The significant outflows from ETFs and lackluster market performance have intensified investor concerns. While the market may experience temporary declines, some analysts remain optimistic about the long-term potential of Bitcoin, expecting a recovery and continued growth after this period of volatility.