Bitcoin ETFs hemorrhage over $730 million in one week, where is BTC headed?

• Bitcoin ETFs noted consistent outflows throughout the week, totaling over $730 million. 
• BTC supply on exchanges is down 27% in the past six months, despite consistent profit taking by Bitcoin holders. 
• At the current price, nearly 82% Bitcoin holders are profitable, likely to realize gains and increase selling pressure on BTC. 

Bitcoin touched $63,379, a one-month low for the asset as outflows from investment products, ETFs climbed. Bitcoin ETFs noted over $730 million in outflows in one week. 

Bitcoin price dipped nearly 3% in the past seven days on Binance. Altcoins were hit by a marketwide correction as BTC traded below $65,000. 

Bitcoin sees surge in ETF outflows

Data from Spotonchain shows that Bitcoin ETFs noted outflows totaling upwards of $730 million in the past week. Consistent outflows signal a loss of demand among institutional investors and a decline in relevance among market participants. 

Outflows coincide with the recent drop in Bitcoin price. The asset hit a one-month low at $63,379, on Friday, June 21. 

30-day net inflow of Bitcoin ETFs by SpotOnChain

Bitcoin on-chain metrics show BTC is resilient despite profit taking

Santiment, a crypto intelligence tracker, shows that Bitcoin supply on exchanges has declined by 27% in the past six months, between January 22 and June 22, 2024. Typically, reduced volume of the asset on exchanges is bullish as it reduces the selling pressure. 

In the same timeframe, Bitcoin holders have consistently taken profits, as evidenced by the Network Realized Profit/Loss metric. This metric determines the net profit/loss of all tokens moved on a given day. 

NPL shows several positive spikes, implying holders have realized gains on their Bitcoin holdings. Despite profit taking, Bitcoin supply is 27% lower than in January and the asset sustained above $63,000, a key support level. 

Bitcoin supply on exchanges and Network realized profit/loss

This could change, according to IntoTheBlock data. Bitcoin holders are more likely to take further profits as nearly 82% of the wallets holding BTC are currently profitable. Less than 15% wallets holding Bitcoin are sitting on unrealized losses. 

The $63,426 level is a key support for Bitcoin, per the Global In/Out of the Money metric. If Bitcoin dips under this level, it could extend losses up to $46,348. 

Global In/Out of the Money 

At the time of writing, Bitcoin is trading at $64,279 on Binance.