News about massive bitcoin ETF withdrawals point to a possible market bottom

Bitcoin exchange-traded funds (ETFs) made major headlines this week by recording their largest outflows since November. According to data from SoSoValue, a net total of US$1.220 billion exited during the first four days of the week, reflecting a significant shift in institutional investors’ behavior. The largest cryptocurrency was traded around US$88,160, down 0.90% in the last 24 hours.

Bitcoin ETF reveals key patterns in capital flow behavior

These fund withdrawals are not anecdotal. On Tuesday, outflows of US$479.7 million were recorded, followed by an even more significant movement on Wednesday with US$708.7 million. This pattern of massive outflows corresponds to a period when Bitcoin declined approximately 5%.

What’s interesting is that, historically, these peaks in ETF outflows have coincided with times when the asset’s price hits local lows. Last November, when a similar amount of withdrawals occurred over four days, Bitcoin formed a low near US$80,000 before rebounding strongly to levels above US$90,000 in the following days.

Technical analysis: key support levels under watch

The average cost basis for ETF holders is currently at US$84,099. This point has proven to be a critical support zone during previous corrections, especially during the November pressure when it touched US$80,000, as well as in April 2025. Glassnode data reveals that this level continues to act as an important barrier.

In broader terms, Bitcoin faces resistance near US$89,000. The market is torn between maintaining positions in a consolidation roughly 30% below the October all-time high or preparing for a sustained bullish move. Analysts observe that the cryptocurrency is trading more as a high-risk asset than as an inflation hedge.

Macroeconomic context putting pressure on crypto markets

The strength of the US dollar and the outstanding performance of commodities—particularly gold at all-time highs, silver and copper at elevated levels—have diverted investment flows. Additionally, the Federal Reserve maintains its rates unchanged, creating a cautious trading environment.

Ethereum, Solana, BNB, and Dogecoin posted modest gains, but macro pressure keeps the crypto market in a state of relative caution. Sentiment is fragmented: while some see ETF withdrawals as an indicator of exhaustion on the sell side, others remain attentive to technical resistance levels.

The next reaction to ETF flow news will be decisive in determining whether we are truly at a turning point toward recovery or if consolidation will prolong.