US Bitcoin ETFs Clock Three-Day Outflow Streak as Risk Appetite Cools
U.S. spot Bitcoin ETFs saw $205.5 million in outflows Thursday, totaling $934.8 million across three days as traders reassess risk amid fading new year optimism. Net inflows have surpassed outflows on only two days so far in 2024, though the seven-day net flow is still positive at $240.7 million. ETF flows are widely viewed as reflective of market sentiment and can influence Bitcoin’s price direction. Bitcoin’s year-to-date gains have dropped from 8% to 4%, with the price recently trading flat near $91,100 after a dip below $90,000. Factors for the outflows include capital reallocation, Bitcoin’s inability to break resistance at $92,000, macroeconomic concerns tied to U.S. geopolitical developments, and worsening U.S. job data. The recent rally took Bitcoin into price territory dominated by top buyers with a concentrated cost basis, creating breakeven sell pressure. The options market indicates waning upward momentum and expectations of near-term price consolidation. If Bitcoin stabilizes, the next significant resistance for a recovery rally is the short-term holder cost basis of $98,900.
