Outflows from US spot Bitcoin exchange-traded funds (ETFs) totaled $1.3 billion in the past two weeks amidst declining Bitcoin prices. According to Farside Investors’ data, Bitcoin ETFs experienced a combined outflow of $1.298 billion during this period, with Grayscale leading with $517.3 million in outflows.
Interestingly, BlackRock’s Bitcoin ETF emerged as the sole performer with positive results, attracting inflows totaling $43.1 million over the same two-week span.
During the same period, Bitcoin (BTC) has seen an 11.6% decline, dropping from $69,476 on June 10 to $61,359 as per TradingView data at the time of reporting.
The recent wave of outflows from spot Bitcoin ETFs marks the largest since April, when these investment vehicles experienced total net outflows exceeding $1.2 billion between April 24 and early May.
Jonathan de Wet, Chief Investment Officer at digital asset trading firm ZeroCap, commented to Cointelegraph that “the bleed continues” across the broader crypto market. He anticipates Bitcoin’s price could decline to its “key support” level around $57,000 in the coming weeks, citing ongoing Mt. Gox creditor repayments.
“BTC and ETH are holding up surprisingly well compared to the rest of the market, with BTC having key support at $63,000 and ETH at $3,400, both staying within their price range over the past few months,” de Wet noted.
Market commentators have expressed concerns about potential downward pressure ahead, stemming from factors such as Bitcoin sales by the German government and anticipated Mt. Gox creditor repayments totaling nearly $9 billion in BTC expected in July.
Jonathan de Wet acknowledged the likelihood of Bitcoin and other cryptocurrencies facing further declines in the upcoming week due to sell pressure from Mt. Gox creditor repayments. Despite this, he maintains a bullish long-term outlook, citing expectations for the launch of an ETH ETF that could ease biases toward the end of 2024, with actual easing anticipated in 2025.
However, analysts like eToro’s Farhan Badami believe the impact of Mt. Gox creditor repayments might not be as severe as anticipated. Badami views Bitcoin as forward-looking and capable of pricing in significant market events. He anticipates Bitcoin stabilizing in the coming weeks and potentially rallying to new all-time highs in the months ahead.
“In the near term, we may see Bitcoin trading within a range of $60,000 to $70,000 USD.”
