Key Takeaways
- Spot Bitcoin ETFs saw $869.9M exit Thursday, marking the second-largest outflow on record.
- BTC fell 6.4% to $96,956 amid liquidity pressure and cascading liquidations.
- Analysts view current levels as oversold, highlighting potential long-term buying opportunities.
- Macro uncertainty, Fed policy expectations, and market risk-off sentiment are key drivers.
Spot Bitcoin ETFs Record Second-Largest Outflows
U.S. spot Bitcoin exchange-traded funds (ETFs) experienced $869.9 million in net outflows on Thursday, marking the second-largest daily exit in history. Grayscale’s Bitcoin Mini Trust led the trend with $318.2 million withdrawn, followed by BlockRock’s IBIT at $256.6 million and Fidelity’s FBTC at $119.9 million. Other funds, including ETFs from Ark, 21Shares, Bitwise, VanEck, Invesco, Valkyrie, and Franklin Templeton, also reported net outflows.
Also Read: Why Bitcoin ETFs Are Booming Despite BTC Drop
Thursday’s sell-off trails only the record $1.14 billion outflow on February 25, 2025, highlighting a growing risk-off sentiment among institutional investors.
Market Experts Point to Macro Uncertainty
Analysts interpret these withdrawals as part of broader market de-risking. Vincent Liu, CIO of Kronos Research, stated, “Large outflows signal a risk-off reset, reflecting institutions pulling back amid macro noise. These bleed-outs align with oversold conditions, opening doors for long-term opportunists.”
Min Jung, research associate at Presto Research, emphasized that capital rotations reflect caution. “Investors are pulling capital from higher-beta assets and rotating into safety, reflecting uncertainty around the Fed’s path and deteriorating macro sentiment,” Jung noted.
Bitcoin Prices React Amid Liquidity Pressure
The outflows coincided with a 6.4% drop in Bitcoin, which fell to $96,956 as of early Friday. Liu described the decline as a “liquidity let-down,” with cascading liquidations meeting thin demand. Analysts highlight a support zone between $92,000 and $95,000, where buyers may gradually rebuild depth.
Also Read: Bitcoin Price Prediction: Whale’s $200M Bet vs. $1B Shorts – BTC’s Next Move?
Justin d’Anethan, head of research at Arctic Digital, added, “Should prices drop to the lower $90Ks, it could present a buying opportunity for sidelined investors, especially after Bitcoin’s recent peak above mid-$120Ks.”
Jung emphasized that no single catalyst drove the decline. Instead, it reflects a mix of macro uncertainty, softening labor data, and adjusted rate-cut expectations ahead of the December FOMC meeting.
