Bitcoin Bleed Extends with Second Consecutive $600M Exodus

• Bitcoin continues to shed millions in outflows as it slips to new price lows.
• The downward pressure has negatively impacted Bitcoin exchange-traded funds.
• Bitcoin has significantly dropped from the peak value it reached earlier this year.

The past weeks in the crypto market have been marked by declines, spearheaded by Bitcoin (BTC) , which has retreated to new price lows. Since dropping from its year-high range of $73,000, the crypto king has struggled to maintain stable momentum, extending the negative sentiment across the broader ecosystem.

Last week, the prolonged downward trend resulted in a Bitcoin-led exodus of funds totaling $530 million. Unable to reverse the trend, BTC has once again seen significant outflows.

Bitcoin Outflows Hit $630M

Per a Monday, June 24, 2024 CoinShares report , Bitcoin recorded a total of $630 million in outflows last week. The exodus follows the previous week’s shed of approximately $631 million,  marking the second consecutive loss of funds for the crypto king.

Bitcoin’s outflows extended its fate to other notable assets, including Ethereum (ETH) , which recorded $58.3 million in outflows. The United States dominated the exodus, seeing the largest outflows at $475 million, followed by Canada with $109 million. Other regions, including Germany and Hong Kong, were not left out, also experiencing losses to the tune of $24 million and $19 million, respectively.

Despite the negative wave, some assets managed to buck the trend. These include Solana, Litecoin, and Polygon, which mounted healthy gains of $2.7 million, $1.3 million, and $1 million, respectively.  

The downward trend in Bitcoin’s performance coincides with the severe losses witnessed across Bitcoin exchange-traded funds.

Bitcoin ETFs Shed Millions

The negative market momentum has resulted in a large-scale exit of investors from Bitcoin ETFs , leading to a six-day consecutive trend of losses for issuers.

Fidelity’s FBTC lost $271 million, followed closely by Grayscale’s GBTC, which lost $150 million. Other issuers, including Ark 21Shares and Bitwise, also lost money, totaling $79 million and $36 million, respectively.

The only positive trend of inflows among US-based issuers was attributed to BlackRock’s IBIT, which bucked the trend to pull in $1 million.

At press time, Bitcoin is trading at $58,875, down approximately 8% in the last 24 hours.

On the Flipside

• Despite its underperformance, short Bitcoin positions recorded only $1.2 million in outflows, indicating a decrease in bearish bets.
• The German government’s sale of $200 million worth of BTC has sparked attention as a contributing factor to the downward market pressure.
• The looming Ethereum ETF approval is brewing hope for a resurgence in life for Bitcoin.

Why This Matters

The significant outflows from Bitcoin and spot ETFs extend the market giant’s trend of losses, further brewing negative momentum. However, the crypto market is no stranger to volatility, and Bitcoin’s historical ability to launch into uptrends offers hope for a potential recovery.

Read more about the negative trend across Bitcoin ETFs in recent weeks:
Bitcoin ETFs Face $714.4M Outflow in Four Straight Trading Days

Industry figures are still bullish on Bitcoin despite its underperformance, read more:
Bitcoin to Hit $10M:’ Micheal Saylor Lauds BTC’s Immortality