Bitcoin ETFs See Back-to-Back Outflows as Bearish Sentiment Grows

Spot Bitcoin ETFs saw $467 million in net outflows over two days, reflecting growing bearish sentiment in the crypto market.

Fidelity’s FBTC-led ETF outflows, while Invesco’s BTCO saw modest inflows despite the overall trend.

Analysts predict Bitcoin could drop to $70K, but maintaining levels above $110K is crucial to avoid further corrections.

The U.S. spot Bitcoin exchange-traded funds (ETFs) have witnessed their second consecutive day of outflows, as investor sentiment in the broader crypto market turns bearish. According to data from SoSoValue, the 12 U.S. spot Bitcoin ETFs saw a net outflow of $103.61 million on Tuesday, September 23, marking a total of nearly $467 million in outflows over two days.

Fidelity’s FBTC led the charge, experiencing $75.56 million in withdrawals. Other notable funds, including ARK 21Shares’ ARKB and Bitwise’s BITB, also saw substantial outflows of $27.85 million and $12.76 million, respectively. Despite the heavy withdrawals from most ETFs, Invesco’s BTCO managed to attract $10.02 million in inflows, partially offsetting the broader trend. Additionally, BlackRock’s IBIT recorded modest inflows of $2.5 million, while seven other Bitcoin ETFs saw no significant changes in their flows.

Recent Bitcoin Price Drop Fuels Bearish Outlook

The recent outflows from Bitcoin ETFs coincide with Bitcoin’s drop to multi-week lows. On Monday, the cryptocurrency market experienced one of the largest liquidation events this year, with over $1.7 billion in liquidations, primarily affecting long positions. Bitcoin’s price fell below the $115,000 threshold and dropped to $111,369 the following day, as bearish sentiment increased.

Much of the selling pressure stems from fading optimism about U.S. Federal Reserve rate cuts. After last week's interest rate cut, traders had hoped for a shift toward an easing cycle. However, the Fed's hawkish stance and a reduced expectation of rate cuts in 2025 led to a decline in market confidence. Consequently, many investors opted for risk-off positions, contributing to the outflows from Bitcoin ETFs.

Analysts Predict Potential Bitcoin Drop

Despite these short-term challenges, analysts remain cautious but optimistic about Bitcoin’s long-term prospects. Some predict that Bitcoin could fall to as low as $70,000, citing the ongoing market uncertainties. TYMIO founder Georgii Verbitskii noted that Bitcoin must hold above $110,000 to avoid further correction. He added that a gradual rebound toward $118,000 would signal a potential resumption of the uptrend.

Social media sentiment reflects the prevailing bearish tone, with online discussions increasingly focused on Bitcoin’s possible decline to the $70,000–$100,000 range. Meanwhile, bullish predictions for a price surge to $130,000 or higher have become less common.

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