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US spot Bitcoin exchange-traded funds recorded heavy net outflows. According to SoSoValue, on July 1, US spot Bitcoin ETFs saw total net outflows of $294.62 million, extending their streak of net withdrawals to 10 consecutive trading sessions.
BlackRock's IBIT posted the largest net outflow at $219.41 million. Fidelity's FBTC recorded net outflows of $51.02 million, Ark Invest and 21Shares' ARKB lost $39.9 million, and Grayscale's GBTC saw $62.79 million leave the fund.
By contrast, Morgan Stanley's MSBT drew $29.81 million in net inflows, while Grayscale Mini Bitcoin added $36.33 million.
The 10-day streak of outflows has passed the $1.2 billion mark. This is significant, as the spot Bitcoin ETFs are considered the institutional demand channel. The heavy redemption shows that institutional investors are willing to cut back in periods of continued downtrend.
The current rebound sits on shaky ground. June was Bitcoin's worst month in four years, down 20%. US spot Bitcoin ETFs bled a record $4.5 billion for the month, with BlackRock's IBIT alone making up $3.55 billion.
Macro headwinds: Warsh's Fed has nudged the rate path toward holds, even hikes, while the dollar sits near yearly highs and gold keeps sliding.
At press time, Bitcoin trades at $61,630 with an increase of 1.94% in the last 24 hours.
The ongoing withdrawals indicate a conservative institutional sentiment. The pressure has been increasing since Bitcoin's previous surge, with uncertainty around the spot Ethereum ETFs and the anticipated Mt. Gox distributions, along with a "risk-off" macro environment.
The macro conditions are also not favorable. The dollar is up, and risk assets like cryptocurrency are falling amid expectations that US rates may remain elevated.
According to CoinGlass, the Crypto Fear and Greed Index stands at 22 in the fear territory. The index has improved from 10 on July 1, when the BTC was trading at $58,410.60. Bitcoin Dominance stands at 57.9% with a decline of 0.14%.
Also Read: Crypto News Today: American Bitcoin Plans Reverse Split to Protect Nasdaq Listing
Why this Matters
Record ETF liquidations reveal institutional capital executing a massive "risk-off" retreat. With macro headwinds keeping interest rates high, this unprecedented selling pressure strips away Bitcoin’s institutional safety net, leaving the current market rebound highly vulnerable to further downside.
BTC rebounded from a 21-month low of $57,800 earlier this week. However, BTC maintains a bearish bias, as it remains below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $66,010, $69,816, and $75,777, respectively.
The Relative Strength Index (RSI) at 44.87 stays below the midline, suggesting subdued buying pressure, while the Moving Average Convergence Divergence (MACD) shows a positive reading with the MACD line above its signal and above zero, indicating slightly improving momentum.
On the upside, immediate resistance is placed at $64,004, ahead of the 50-day EMA at $66,010. Further up, the 100-day EMA at $69,816 and the 200-day EMA at $75,777 align as successive resistance levels.
On the downside, a failure to reclaim the $64,000 would leave BTC vulnerable to renewed selling pressure targeting the key psychological level at $55,000.
1. How much outflow did spot-Bitcoin ETFs record?
According to SoSoValue, US spot-Bitcoin ETFs recorded $294.62 million in net outflows on July 1.
The outflow extended the withdrawal streak to 10 consecutive trading sessions.
2. Which Bitcoin ETF saw the biggest outflow?
BlackRock’s IBIT saw the largest net outflow at $219.41 million. Fidelity’s FBTC, Ark Invest and 21Shares’ ARKB, and Grayscale’s GBTC also recorded sizeable withdrawals.
3. Did any Bitcoin ETFs see inflows?
Yes, Morgan Stanley’s MSBT saw $29.81 million in net inflows, while Grayscale Mini Bitcoin added $36.33 million. This suggests some investors are rotating between ETF products rather than exiting the category completely.
4. What does the Crypto Fear and Greed Index show?
According to CoinGlass, the Crypto Fear and Greed Index stood at 22, placing the market in fear territory. The index improved from 10 on July 1, when Bitcoin was trading near $58,410.60.
5. What are the key Bitcoin levels to watch?
Bitcoin needs to reclaim $64,004 first, followed by the 50-day EMA near $66,010, to improve sentiment.
If BTC fails to break above $64,000, selling pressure could return and push the price toward the $55,000 support zone.
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