Bitcoin Trading is back to levels seen in early February: near $60,000. But this time the reaction of the institutions is completely different.
ETF flows show that today, they are aggressively selling declines, unlike February, when selling slowed as prices fell near $60,000. This marks a fundamental shift in the way institutions view Bitcoin at this stage.
11 US-listed spot Bitcoin ETFs saw net outflows of $1.72 billion last week. This is the largest single-week redemption in more than a year, according to data source SoSoValue. In the first week of February, when BTC fell to nearly $60,000, the ETF lost just $318 million.
The paradox of recession does not end here.
Outflows have accelerated for four consecutive weeks, rising from $1 billion to $1.26 billion in the week ended May 15, then $1.26 billion and $1.42 billion in the next two weeks, and most recently $1.72 billion.
It was different in February. The week that BTC reached $60,000 saw a redemption of $318 million. But in the two weeks before that, there was a withdrawal of $1.33 billion and $1.49 billion. In short, as the price fell, outflows slowed. Buyers came.
This time, the trend has reversed: as the price fell, outflows intensified. Week after week, sharp redemptions and no institutional bid below them.
The pattern tells a bearish story and suggests that bulls may have difficulty holding the $60,000 support. At the time of writing, Bitcoin reached near $62,000.