Bitcoin ETFs outflow $706m: BlackRock, WisdomTree buck trend

Outflows from spot Bitcoin ETFs (exchange-traded funds) in the U.S. have exceeded $706 million this week. Bears have dragged Bitcoin to $53,304, the lowest level since Aug. 5.

According to SoSoValue data, 12 spot Bitcoin ETFs recorded net outflows of $169.97 million on September 6, with Grayscale and Fidelity leading the outflows.

Fidelity’s FBTC lost $85.5 million, the fund saw negative flows over the past seven trading days. Grayscale’s GBTC contributed to the liquidity, with $52.9 million exiting the fund and bringing total losses since inception to over $20 billion. The fund lost $279.9 million over the past eight days, continuing a streak of outflows dating back to August 27. Bitwise’s BITB saw $14.3 million in outflows ARK 21Shares’ ARKB, $7.2 million Grayscale’s Bitcoin mini trust, $5.5 million Valkyrie’s BRRR, $4.6 million BlackRock, WisdomTree avoided outflows

BlackRock’s IBIT and WisdomTree’s BTCW were the only Bitcoin ETFs to avoid outflows last week, but they did not record any new inflows in the past two days.

This investor hesitation coincides with Bitcoin’s recent decline, with the leading cryptocurrency briefly touching $52,690, its lowest point since Aug. 5, before falling back to $54,333 at press time. Still, BTC is down 3% in the past day.

Bitcoin is down 10.4% from its weekly high and 17.5% from its 30-day high of $64,648 reached on Aug. 26. The turbulence intensified as $113.86 million worth of Bitcoin positions were liquidated in the past 24 hours, according to Coinglass.

Bitcoin’s price drop comes amid growing unrest in the crypto market, fueled by the “Redtember” seasonal downturn and uncertainty over potential US interest rate cuts. These factors have dampened investor confidence and exacerbated market volatility.

The widely-tracked Crypto Fear and Greed Index is still at 23, its lowest level in more than a month, according to data from Alternative, indicating high investor anxiety and a risk-averse market environment.

Further declines expected

Technical indicators suggest that a death cross could soon occur, with the 50-day and 200-day Exponential Moving Averages approaching a crossover. Death crosses are one of the most feared patterns in technical analysis. Bitcoin fell more than 67% after forming a death cross in January 2022.

BTC price chart – September 7 | Source: crypto.news

Analysts on social media platform X have also maintained their bearish outlook. According to crypto analyst Pushpendra Singh Digital, BTC is stuck in a falling wedge pattern.

It suggests that a break above the wedge formation in the $57,800-$58,000 range could lead to a strong upward move.

However, if BTC breaks below the support trend line near $54,000, there are chances of further declines.

Falling wedge pattern forming on BTC/USD 4-hour chart | Source: X/PushpendraTech

Reflecting this cautious sentiment, the 1-day BTC/USDT chart shared by crypto analyst Nika also highlighted Bitcoin’s struggle to break above the $58,000 level.

If the cryptocurrency fails to clear this resistance zone, it could face a more significant downside trend with potential support levels at $45,000 and $42,000.