Bitcoin ETFs See $910 Million In Outflows Over Two Weeks

American bitcoin ETFs have just gone through two difficult weeks, with nearly $910 million in net outflows. At the same time, the BTC price has fallen back below the estimated average purchase price of their investors. Enough to test their patience, as the month of October, initially promising, sinks into the red.

Bitcoin ETFs, nearly one billion dollars withdrawn in two weeks

Investors continue to withdraw their money from American bitcoin ETFs. Last week, these funds lost $228.6 million, after a first week marked by $681.1 million in net outflows.

The session details nevertheless show some rebound attempts. On Tuesday, the funds attracted $175.7 million. On Thursday, they recorded a slight positive balance of $5.1 million. But on Wednesday, withdrawals reached $261.4 million, erasing part of these inflows.

Consequently, October now displays a negative balance of about $615 million, although the month had started on a positive note, with $293 million inflows. The reversal notably accelerated on October 7, when investors withdrew $484.9 million in a single session.

Yet some analysts continue to foresee a rise of BTC towards $87,000, or even $90,000, thanks to the formation of an ascending triangle. ETF outflows nonetheless remind that not all investors share this optimism.

A threshold that could weaken investors

The BTC price adds a difficulty. On Thursday, it briefly dipped below $80,000 before rising again. On Friday, it hovered around $81,590, still below the estimated average purchase price of ETF holders, around $82,300 according to Nexo.

This level is not an absolute technical threshold. However, it remains important for investors’ morale: when their investment goes into the red, some prefer to sell rather than risk further losses.

The pressure has also spread to derivative markets. According to data from CoinGlass, nearly $950 million in leveraged positions were liquidated within 24 hours, about 90% of which corresponded to bullish bets.

Inflation and rates, a less favorable context for BTC

The economic situation also complicates the outlook. In September, US inflation reached 3.7% year-on-year, exceeding the anticipated 3.6%. This surprise rekindled concerns about interest rates.

Higher bond yields make traditional investments more attractive and can divert capital from risky assets like bitcoin.

Nevertheless, the overall balance remains positive in the long term. Since their launch in January 2024, American bitcoin ETFs have accumulated roughly $57.3 billion in net inflows, with nearly $104 billion in assets. Ether and Solana ETFs have also finished this period in the red.

The rest will depend on investors’ reactions. Some may sell to limit their losses, while others will take advantage of the dip to buy. This will notably depend on the evolution of inflation and rate expectations.