Bitcoin ETFs Face Heavy Outflows, But Market Shows Signs of Recovery
U.S. Bitcoin ETFs experienced a tough week, losing $1.23 billion. On Friday alone, outflows reached $366.6 million. Despite this, shrinking exchange supply hints at a possible rebound.
BlackRock’s iShares Bitcoin Trust suffered the most, losing $268.6 million. fidelity’s fund and Grayscale’s GBTC also saw notable withdrawals.However, some ETFs remained stable. This comes after a massive $19 billion liquidation event last weekend,triggered by U.S. President Donald Trump’s tariff announcement on Chinese imports.
Amid the turmoil, a positive sign emerged. Bitcoin’s exchange supply hit a six-year low. Over 45,000 BTC, worth about $4.81 billion, were withdrawn since early October. Historically,lower exchange reserves reduce selling pressure,often leading to price recovery.
Analysts like Scott Melker from The wolf of All Streets podcast believe this is a sign of underlying market strength. He argues that recent events force the market to reprice risk but don’t signal a bear market. Public companies are adding BTC to their balance sheets, and Luxembourg made Eurozone history with Bitcoin.
Despite the largest liquidation in crypto history, October is still holding up. This suggests the market might be stronger than expected. For more insights, check Scott Melker’s Twitter.
