Bitcoin Spot ETFs See Massive Drawdown, But Here’s Why a Bull Run Might Be Brewing
Bitcoin's price has increased consistently, trading above $87,000 and nearing the $90,000 level, with a 3.4% rise in the past day. Despite this price surge, significant outflows from Bitcoin spot exchange-traded funds (ETFs) have been recorded, totaling over $4.8 billion since their peak inflow. This marks the largest drawdown since the ETFs' inception, indicating a shift in institutional behavior. However, Bitcoin's price remains stable, suggesting limited sensitivity to ETF declines due to broader liquidity in the market. Analysts note that ETF volumes account for only 1.5% of total trading volume, implying that short-term ETF fluctuations may not dictate market direction. Historical on-chain indicators show similarities between the current cycle and previous phases, particularly between 2018 and 2025, suggesting a potential transition from bearish to bullish sentiment, although macroeconomic factors could influence outcomes.
