Bitcoin Dips Below $71K Amid ETF Outflows

ETF withdrawals briefly weigh on Bitcoin, but institutional filings indicate continued long-term investor confidence.

Man in the middle of the Bitcoin rollercoaster.
Created by Kornelija Poderskytė from DailyCoin

After seven consecutive days of inflows, U.S. Bitcoin ETFs recorded net outflows, briefly pressuring the cryptocurrency below $69,000. Despite the short-term decline, institutional interest remains strong, with Morgan Stanley filing an updated S-1 for a Bitcoin ETF.

ETF Outflows Hit $250 Million, Pressure BTC Briefly

Following a week of positive inflows, U.S. Bitcoin ETFs experienced withdrawals, signaling some profit-taking among investors.

According to SoSoValue data, more than $250 million flowed out of U.S. Bitcoin Spot ETFs over the past two days.

Source: SoSoValue

The outflows coincided with a temporary dip in BTC prices, highlighting the influence of ETF liquidity on the broader market.

At the same time, Morgan Stanley’s updated Bitcoin ETF filing keeps optimism alive, showing big investors are still betting on the long term, not just short-term gains.

Bitcoin (BTC) price rebound from by more 3.6% from $68.8K lows on Thursday toover $71.3K, ir siuo metu trades at around $70.6K.  

Bitcoin’s recent price swings were shaped by several factors. Oil briefly jumped above $110 after Iran-related strikes in the Gulf, but later eased, reducing immediate geopolitical pressure. Broader market moves were also influenced by Federal Reserve signals, with no rate cuts expected and a generally cautious tone, affecting risk assets including cryptocurrencies.

As of today, based on Realized Price and profit/loss metrics Bitcoin sits just above past cycle lows, as market interest has waned, signaling a “textbook bear phase,” say analysts from crypto analysis firm CryptoQuant.

Despite recent swings, Bitcoin has held up better than gold and silver, showing that investors still see it as a risk-on asset. Silver has dropped about 8% over several days, while gold has also fallen.

Why This Matters

ETF flows and macro-driven volatility offer insight into Bitcoin’s short-term liquidity and investor behavior. At the same time, institutional filings like Morgan Stanley’s demonstrate continued long-term positioning, signaling confidence in Bitcoin.

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People Also Ask:

How do ETF inflows and outflows affect Bitcoin?

ETF inflows can support BTC prices by increasing demand, while outflows may create short-term selling pressure and price dips.

Why is institutional interest in Bitcoin important?

Large investors help provide liquidity, stabilize markets, and signal confidence, which can influence broader market sentiment.

How do macro factors like oil prices and Fed signals impact Bitcoin?

Bitcoin often reacts to broader economic conditions; changes in oil prices, interest rates, or Fed policies can influence investor risk appetite and crypto prices.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Alex Costa

Alex Costa is a crypto writer and investor specializing in researching, analyzing and reporting on promising small-cap projects that are gaining traction in the industry. He has been in crypto since 2018, when he began looking for hidden gems in crypto. Today, he is dedicated to finding the next top performing NFTs and tokens.

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