ETFs Record $1.2 Billion in Weekly Outflows

The Bitcoin market is navigating a period of significant turbulence, highlighted by the third-largest weekly outflow ever recorded from spot Bitcoin Exchange-Traded Funds (ETFs). Investors pulled a total of $1.2 billion from these products, signaling a wave of profit-taking and cautious sentiment. This substantial withdrawal occurred even with a modest rebound in buying activity toward the end of the week, underscoring the prevailing selling pressure in the short term.

Institutional Narrative Remains Strong

Despite the bearish outflow data, the long-term institutional perspective on Bitcoin appears unshaken. A BlackRock executive recently reinforced this view, stating that major investors are primarily focused on Bitcoin’s role as “digital gold” and a store of value rather than its utility as a payment system. This narrative continues to provide a strong foundation for the asset’s investment thesis, separating it from short-term price fluctuations.

Adding to this long-term optimism, macro analyst Lyn Alden commented that she doesn’t see a “big crash” on the horizon for Bitcoin. Her analysis suggests that while volatility is expected, the underlying market structure remains robust, countering fears that the recent downturn could escalate into a more severe collapse.

Altcoins Navigate Key Price Levels

The broader cryptocurrency market is also facing critical tests. Ethereum has seen significant accumulation from large-scale investors, with whale wallets adding $241 million worth of ETH. This activity has prompted speculation that a price reversal could be imminent as major players build their positions.

Meanwhile, XRP is facing a more challenging technical picture. After losing a crucial support level at $2, analysts are now closely watching the $1.80 mark. This price is now widely considered the last major line of defense to prevent a deeper downturn for the asset.

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