Bitcoin's ETF Fund Flow Dips, Next Turning Point at $80,000?

▲ Bitcoin (BTC) Exchange Traded Fund (ETF) ©CoinReaders

The market is shaking again as the inflow rally for Bitcoin (BTC) spot ETFs has halted. Amid a slowdown in institutional buying, there's even talk of Bitcoin potentially testing the $80,000 support level.

According to crypto media outlet Finbold on May 8 (local time), US Bitcoin spot ETFs ended a five-consecutive-trading-day streak of net inflows, recording a net outflow of $277.5 million. Although over $1.6 billion flowed in earlier in May, investor sentiment has contracted again, leading to increased selling pressure. However, the total amount of Bitcoin currently held by these ETFs is estimated to be approximately $106.77 billion.

According to SoSoValue, US Bitcoin spot ETFs recorded the strongest capital inflow among the last six trading days, with a net inflow of $629.73 million on May 1 alone. However, investor buying intensity gradually weakened thereafter, and some funds exited the market.

BlackRock's iShares Bitcoin Trust (IBIT) recorded a net outflow of $98.02 million on this day. Although IBIT had purchased over $1 billion worth of Bitcoin during the previous five trading days, it is understood that some profit-taking sales occurred. Its current assets under management are approximately $75.8 billion. Fidelity Wise Origin Bitcoin Fund (FBTC) also recorded net outflows for two consecutive days, with a total of $167.94 million exiting. FBTC's assets under management are estimated at $15.24 billion.

Conversely, on-chain metrics detected the possibility of a recovery in long-term investor demand. According to CryptoQuant data, the total Bitcoin holdings across all exchanges decreased from 2,686,423 BTC on May 1 to 2,676,591 BTC on this day. This indicates that approximately 9,832 BTC moved off exchanges, meaning the supply available for sale is decreasing. Indeed, during the same period that the BTC supply on exchanges decreased by 0.37%, Bitcoin's price rose by more than 2%, trading near $80,180.

However, the media outlet diagnosed that the slowdown in demand from US institutional investors is weakening Bitcoin's upward momentum. Bitcoin encountered resistance after attempting to break past $82,000 earlier this week, and there was even a possibility of it dropping below $80,000 at one point during intraday trading. Finbold analyzed that investors should closely monitor ETF fund flows, stating that this net outflow is a key variable to determine whether it is a short-term correction or the beginning of a trend reversal.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*