Spot Bitcoin ETFs witnessed significant outflows of nearly $650 million on Monday, extending a recent trend of selling pressure. BlackRock’s IBIT fund led the withdrawals with $448 million, contributing to Bitcoin’s price dropping below $77,000. Analysts attributed the outflows to geopolitical tensions and shifting Federal Reserve rate expectations, though some on-chain metrics suggest underlying market strength.
Spot Bitcoin ETFs saw $648.64 million in outflows on Monday, according to data from SoSoValue. This followed over $1 billion in outflows last week as the price of Bitcoin fell 6.7%.
BlackRock’s IBIT led Monday’s withdrawals with $448 million. The ARK Invest and 21Shares ETF saw $110 million in outflows, while Fidelity’s fund lost $63 million.
Advisor Agne Linge stated the outflows “correlated to the general market and reflect the de-risking strategy…in light of geopolitical events.” Illia Otychenko of CEX.IO cited last week’s U.S. inflation data and rising Fed rate hike expectations as drivers.
The broader de-risking sentiment was also fueled by concerns over a potential escalation in the U.S.-Iran conflict. The Crypto Fear and Greed Index dropped to a level indicating “Extreme Fear.”
Despite the bearish flows, Bitcoin’s aggregated open interest remains elevated by historical standards. Bitcoin funding rates have also flipped positive after a multi-month negative streak.
Otychenko noted that long-term Bitcoin holders have been accumulating for months at a large scale. He said this behavior is “limiting Bitcoin’s downside potential” and shows long-term conviction.
On the prediction market Myriad, users currently see only a 2% chance of a Fed rate cut in June. For Bitcoin’s price, they place a 77% chance on it reaching $84,000 next.
