Bitcoin ETF Outflows Hit $550 Million: Will the BTC Bull Run Suffer?
Qadir AK27 Nov 20242 min read
After closing the last four days in a bearish outlook, Bitcoin’s (BTC) price has significantly slowed down in the initial bullish momentum towards the much-hyped target of $100k. Moreover, the flagship coin has consistently closed below the previously established support level of $95k.
Is the rally losing steam?
Investor Sentiment Shifts
While Bitcoin’s dominance has weakened, altcoins are showing signs of a bullish trend. On the daily chart, Bitcoin continues to form higher highs, but the Relative Strength Index (RSI) is showing a bearish divergence, which suggests the momentum may be fading.
This could indicate that more investors are turning their attention to altcoins, fueling a rotation of capital within the crypto market.
Bitcoin’s price peak at $99.5k last week saw investor sentiment reach extreme greed, with the sentiment index hitting 93%. However, that has since dropped to about 75%, suggesting that while greed still dominates, it’s not as intense as before. Over the past two days, the US spot BTC ETFs experienced significant outflows, totaling more than $550 million.
US Spot BTC ETFs Are Bleeding
On Tuesday, Bitcoin’s spot ETF issuers saw a net outflow of roughly $122 million. BlackRock’s IBIT saw no net change, while Fidelity’s FBTC and Grayscale’s GBTC experienced the biggest outflows of $95 million and $36 million, respectively.
On the positive side, Bitwise’s BITB and Grayscale’s BTC were the only funds with inflows, attracting $6.47 million and $4.84 million.
Altcoins Take the Lead
Despite Bitcoin still being in a macro bull market—confirmed after the 2024 U.S. elections—the bullish momentum is gradually shifting toward altcoins, particularly Ethereum (ETH). This suggests a growing interest in altcoins, with Bitcoin’s role in the market weakening slightly.
What’s Next for Bitcoin’s Price?
From a technical perspective, Bitcoin may retest the $85k support level if it fails to hold above the $91k range. Veteran trader Peter Brandt believes Bitcoin could climb toward $130k before experiencing a major correction, similar to past bull cycles.
The shift in investor focus suggests that Bitcoin’s dominance may soon be tested—only time will tell which way the market will blow.
FAQs
- Altcoins, particularly Ethereum, are gaining momentum, leading to a shift in investor focus and potentially reducing Bitcoin’s dominance in the market.
