Bitcoin is back to the levels observed at the beginning of February: almost $60,000. But this time, the response from institutions is completely different.
Today, they are selling aggressively into the decline, ETF flows show, unlike February, when selling slowed as prices fell to near $60,000. This marks a fundamental shift in how institutions view Bitcoin at this level.
The 11 U.S.-listed spot Bitcoin ETFs saw net outflows of $1.72 billion last week. It was the largest one-week buyback in more than a year, according to data source SoSoValue. During the first week of February, when BTC crashed to almost $60,000, ETFs lost just $318 million.
The bearish contrast does not stop there.
Outflows accelerated for four straight weeks, from $1 billion in the week ended May 15 to $1.26 billion, then $1.26 billion and $1.42 billion over the next two weeks, and most recently $1.72 billion.
In February, it was different. The week BTC hit $60,000, $318 million disappeared. But the previous two weeks, $1.33 billion and $1.49 billion had been withdrawn. Essentially, as prices collapsed, capital outflows slowed. The buyers showed up.
This time, the trend reversed: as prices fell, capital outflows accelerated. Week after week, faster redemptions and no institutional offer below.
The trend tells a bearish story and suggests that bulls may struggle to hold onto $60,000 support. At the time of writing, bitcoin has changed hands at nearly $62,000.
