Spot Bitcoin ETFs bleed $1B in a week, snapping six-week inflow run

Spot Bitcoin ETFs recorded $1 billion in net outflows over the past week, snapping a six-week inflow streak that had brought in $3.4 billion. The reversal marks the largest weekly withdrawal since the products launched, signaling a shift in risk appetite among crypto investors. This outflow coincides with a broader market correction, as Bitcoin has retreated from recent highs above $70,000 to trade near $62,000, according to live crypto prices and charts on NowPrice. The drawdown in ETF holdings reduces the immediate buying pressure on Bitcoin, as these products typically hold the underlying asset, but it also reflects a loss of momentum after a strong run.

The outflows come as capital rotates toward artificial intelligence stocks, which have outperformed crypto assets in recent weeks. Macroeconomic uncertainty, including concerns over Federal Reserve rate policy and a strengthening US dollar, has also dampened demand for risk assets like Bitcoin. The DXY index has risen, and US Treasury yields remain elevated, making yield-bearing assets more attractive relative to non-yielding assets like Bitcoin. Additionally, on-chain data shows that miner reserves have been declining, as some miners sell BTC to cover operational costs following the halving, which reduced block rewards. Whale concentration remains high, but exchange reserve drawdowns suggest that long-term holders are still accumulating, providing a potential floor. Bitcoin dominance has also slipped slightly, indicating that altcoins are gaining relative share during this risk-off period.

Investors will watch for any stabilization in ETF flows this week, as continued outflows could signal further downside for Bitcoin. Key support levels around $60,000 are being monitored, while a resumption of inflows would suggest the rotation into AI stocks may be temporary. The next Federal Reserve meeting and inflation data releases will also influence sentiment, as higher-for-longer rate expectations weigh on speculative assets. A break below $60,000 could trigger a test of the $56,000 level, which aligns with the average cost basis of short-term holders. Conversely, a recovery above $65,000 would likely reignite bullish momentum, especially if ETF flows turn positive again.