Bitcoin ETFs Shed $8.95B as Selling Pressure Mounts, Price Action Fragile
US spot Bitcoin ETFs have hemorrhaged $8.95 billion since May 7, with outflows accelerating in June. Despite a recent BTC bounce, the persistent selling pressure from these funds suggests the rally is built on shaky ground. Until net inflows show sustained strength, expect continued downside risk.
US spot Bitcoin ETFs just dumped another $296 million, or 5,050 BTC, in a single day. BlackRock, Grayscale, and Fidelity are leading the charge out the door. This relentless selling has now drained a staggering $8.95 billion from these funds since May 7, marking 34 negative trading days out of the last 39. June alone saw a brutal $4.5 billion exit, the worst monthly outflow since their January launch.
Despite a recent 2.4% bump in Bitcoin's price to around $61,600, don't get comfortable. On-chain analyst That Martini Guy points out that ETF selling hasn't paused, funding rates are shifting, and the market structure remains fragile. The current rebound is likely a dead cat bounce until we see a sustained streak of net inflows, not just isolated green days.
Adding to the bearish picture, exchange balances show coins moving off exchanges, typically a bullish accumulation signal. However, history shows this 'accumulation' has coincided with downtrends before, failing to stop the slide. Some of these withdrawals might even be ETF redemptions moving between wallets, not fresh buying pressure.
The bottom line is clear: ETF flows are dictating Bitcoin's marginal price right now. Until these redemptions ease up, on-chain accumulation can't absorb the selling. A sustained flip to net inflows is the only signal that could mark a structural change and a durable bottom.