$358M Bitcoin ETF Outflow, Shifting Gold Correlation Add To Traders’
Bitcoin rebounded 3% after dropping to $85,000, with recent outflows from spot Bitcoin ETFs suggesting weakened institutional demand since the October crash. On Monday, ETFs saw $358 million in net outflows, the largest in over three weeks, stirring speculation about reduced institutional exposure after breaching the $90,000 level. Bitcoin is now trading 31% below its all-time high, possibly signaling the end of its latest bullish phase. However, analysts argue this does not reflect a fundamental trend change, pointing to delayed US interest rate cuts and ongoing Fed balance sheet reductions. Institutional capital remains present via ETFs and corporate reserves, with no evidence of a significant shift to riskier assets. Bitcoin’s correlation with gold has fluctuated since May, showing no consistent relationship, and its 31% price drop hasn’t altered this metric. Despite a short-term correction, there is no clear sign that institutional investors have abandoned Bitcoin, and price behavior remains consistent. Implied volatility in Bitcoin options also matches levels seen in large tech stocks, suggesting ongoing interest. Recent ETF outflows and price declines should not be overemphasized in assessing Bitcoin’s outlook.
