Hassan Maishera
TL;DR
-
Bitcoin is trading just above $77k on Tuesday after losing 5% of its value over the last few days.
-
US spot Bitcoin ETFs recorded an outflow of $649 million on Monday, the largest since January
Institutional Demand Declines as BTC Stays Around $77k
The cryptocurrency market has been bearish over the last few days, with Bitcoin briefly dropping below $77,000 on Monday.
The leading cryptocurrency market is now trading above $77,000, with altcoins recording bigger gains over the last 24 hours.
The bearish performance comes as institutional demand for spot Bitcoin exchange-traded funds (ETFs) has declined over the last few days.
The ETFs recorded their largest single-day net outflows since Jan. 29. Data obtained from SoSoValue reveals that bitcoin ETFs saw $648.6 million in net outflows across seven funds on Monday. This extended last week's total net outflows of $1 billion, which ended a six-week positive streak.
The data shows that BlackRock's IBIT logged the largest outflows yesterday, worth $448.3 million, followed by $109.6 million from Ark & 21Shares' ARKB.
In addition to that, Fidelity's FBTC reported $63.4 million in outflows, while funds from Bitwise, VanEck, Invesco, and Franklin Templeton also logged negative flows.
Analysts believe that the outflows reflect a short-term institutional risk-off move, driven by profit-taking and macro uncertainty.
Despite the outflows, institutions remain active in the crypto market as they use ETFs as liquidity tools to manage their exposure.
Bitcoin’s decline below $77,000 on Monday can be attributed to renewed tensions between the U.S. and Iran and rising oil prices, which fueled concerns about persistent inflation.
Higher U.S. Treasury yields drove ETF outflows as global liquidity tightened and the risk-free returns became more attractive.
Bitcoin is currently in a consolidating phase amid macro-driven volatility, holding a key support zone around $76,000-$77,000.
While Bitcoin and other major altcoins underperform, leading stablecoins such as USDT and USDC continue to expand in market cap, indicating that liquidity is building on the sidelines as investors position for potential dip-buying opportunities if price revisits key levels.
