Recent consecutive outflows from the US-based Spot Bitcoin ETF, which totaled more than $1 billion over the past trading week, suggests a potential buying opportunity for the world’s largest cryptocurrency, according to crypto sentiment platform Santiment.
“Santiment analysts read these flows as an inverse indicator because ETFs disproportionately reflect personal beliefs rather than smart money positioning.” said In Friday’s report.
Santiment said retail investors are losing patience after Bitcoin (BTC) failed to cross $80,000 in May. Bitcoin is trading at $75,410 at the time of publication after reaching a high of $79,052 on May 16th. According to Go to Coin Market Cap.
Santiment contrasts with the broader view of the crypto industry.
This view contrasts with the broader crypto market narrative, where daily outflows from Spot Bitcoin ETFs are often seen as a bearish signal and a sign of weakening retail sentiment that could signal further downside. But Santiment argues that recent outflows are more like a healthy market reset.
Bitcoin has fallen by 4.44% in the past 30 days. sauce: coin market cap
“Sustained ETF outflows have historically correlated with conditions that favor patient accumulation over panic,” Santiment said.
The Spot Bitcoin ETF has recorded outflows in the past six trading sessions, with 11 funds having a combined net outflow of $1.26 billion in the past five days alone. According to Go to far side data.
Bitcoin ETF will surpass all-time high inflows: analyst
Some analysts expect the spot Bitcoin ETF outflow trend to reverse in the near term.
ETF Analyst James Seifert said Michael van de Poppe said on his New Era Finance podcast, published on YouTube on Friday, that Bitcoin ETFs have recouped most of the $9 billion in outflows recorded between October and February.
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“Since the ETF’s launch, we’ve now seen about $60 billion in inflows, which means we’re almost at an all-time peak,” Seifert said.
“I think we will pass it, and there will be so many other ETFs coming to market,” Seifert said.
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