$1.72B Pulled From Bitcoin ETF Amid Fear Spike

In five days, spot Bitcoin ETFs lost $1.72 billion. A sharp drop shaking an already tense market, undermined by an extreme fear sentiment. The Crypto Fear & Greed Index confirms this persistent distrust, while cautious investors seem to be massively withdrawing their positions. This movement, more than a simple technical pullback, raises questions about the current confidence in bitcoin-related products.

Capital outflow on Bitcoin ETFs

Last Friday, US-listed spot Bitcoin ETFs recorded net withdrawals of $103.5 million, extending a now long series of five consecutive days of disengagement.

The total outflows amount to $1.72 billion, according to data compiled by Farside. This retreat occurs during a week already shortened by Martin Luther King Jr. Day. Currently, Bitcoin is capped at $87,948, remaining below the symbolic $100,000 threshold.

These capital movements take place in a context of growing distrust, widely reflected by market sentiment indicators. The Crypto Fear & Greed Index shows :

• A score of 25, corresponding to an extreme fear zone ;
• Continuous presence in this zone since Wednesday ;
• An apparent correlation with the massive withdrawals observed on ETFs.

This positioning reflects a significant drop in investor confidence. ETF products, intended to broaden access to Bitcoin by attracting a more institutional audience, now seem to signal a phase of active disengagement. This disinterest, fueled by macroeconomic uncertainties and sector reallocations, could mark a temporary turning point in the adoption of these financial vehicles.

A rebound in traditional assets : signals of a shift

Beyond visible financial flows, more discreet signals are emerging, revealing a transition underway in the ecosystem.

The analytics platform Santiment talks about a market entering a phase of uncertainty, highlighting that “retail traders are leaving the ship, while money and attention turn to more traditional assets.”

This retreat of non-institutional investors is not accompanied by strong online social activity. On the contrary, the lack of discussions on networks and the supply distribution suggest, according to Santiment, “that a bottom may be forming”.

This cautious but nuanced reading aligns with Nik Bhatia’s analysis, founder of The Bitcoin Layer, who attributes this partial drop to the growing appeal of precious metals. “With gold at nearly $5,000 and silver at $100, sentiment on bitcoin is so low it feels like the post-FTX era at $17,000,” he writes on X.

This opinion is shared by Bob Loukas, who notes that “sentiment is at its lowest, and one could argue that a strong countertrend rebound is brewing.”

Despite price drops and a marked climate of distrust, institutional wallets are strengthening their position on bitcoin, betting on a future recovery. While signals remain mixed, this discreet resilience could mark the beginnings of a turnaround, away from the spotlight on spectacular ETF outflows.