Bitcoin Sentiment Weakens BTC ETFs Lose $103M- Is A Crash Imminent?

Bitcoin ETFs saw an outflow of $103.57 million on January 23. This withdrawal was the fifth straight day that exchange traded funds experienced redemptions. These exchange traded funds saw sustained withdrawals during the second half of January.

Bitcoin ETF Outflows Extend Over Five Sessions

According to SoSo Value data, Blackrock IBIT was one of the largest contributors to this outflows, having reported a loss of $101.62 million in redemptions. Fidelity’s FBTC was the second largest contributor to this loss, having reported a loss of $1.95 million in outflows.

The five-day period of redemption has seen an outflow of nearly $1.72 billion from Bitcoin ETFs. The total net asset value managed now stands at $115.88 billion. On January 16, this figure was $124.56 billion.

At the same time, there were also declines in the overall cumulative totals of net inflows. The overall inflows also fell to $56.49 billion from $57.82 billion. It should be noted that this decline resulted from consistent withdrawal patterns, not from a large volume of transactions taking place in a single trading session.

This outflow trend began on January 16, when $394.68 million left Bitcoin ETFs. The session concluded after four consecutive days of inflows, in which $1.81 billion was injected. The outflows have resumed after the recent inflows.

The markets were closed during the weekend and reopened on January 20. The redemptions resumed at once with $483.38 million in net outflows. The selling pressure increased on the next day.

January 21 saw the largest single-day outflow, totaling $708.71 million in net outflows from bitcoin ETFs. The outflow pace eased somewhat on January 22nd, as $32.11 million in net outflows were seen, before accelerating again on January 23.

Trading activity has decreased with the outflows. The total value traded has fallen to $3.36 billion as of January 23. Two days before that, the daily trading volume reached $5.51 billion.

 Key Bitcoin Indicators Turn Bearish

Furthermore, it is worth noting that a survey carried out by Coinbase Institutional showed there was a significant change in terms of how the market was perceived. The survey found that 26% of institutional respondents believe the cryptocurrency market is in a bear phase. On the other hand, about 21% of the entire number of respondents believe otherwise. respondents

Only 2% of institutional investors and 7% of non-institutional investors held that opinion in the firm’s September survey. Coinbase explained that investors were updating their opinion on the current stage of the overall market cycle in response to recent data.

This is seen through various market indicators. CoinGlass reported that its data showed the Coinbase Bitcoin Premium Index recorded negative values for nine days running at -0.1399%. The index also recorded positive values for only two days this month.

Bitcoin price valued at $89,4241 at press time, up 0.66% in the past 24 hours. The sentiment of retailers continued in a negative state. The Fear and Greed Index showed a reading of 25, indicating that crypto sentiment is in extreme fear.

On-chain metrics indicated that selling pressure was persisting. In fact, according to Glassnode data, Bitcoin dipped below 0.75 supply cost basis quantile. This means that most of the supply of Bitcoin that is currently circulating is held at a loss.

Glassnode also observed resistance in the vicinity of the short-term holder cost basis. The increase in bitcoin’s price to $98,400 prompted sales from the 3-6 month holder class. Their cost basis was estimated to be around $112,600.