Bitcoin’s Bull Market Excess: Daily ETF Outflows Top $500M

According to analysis by blockchain data firm Glassnode, Bitcoin (BTC) did not experience a massive futures margin call despite its price dropping to a two-month low. The lead on-chain analyst, known as Checkmate, highlighted a key change in the Bitcoin bull market. Since Bitcoin’s all-time high in mid-March, there has been a gradual “de-leveraging” across Bitcoin futures, which is seen as the end of the bull market excess. Checkmate compared the current market to the 2021 Bitcoin bull market and pointed out that the funding rates across derivatives have cooled off gradually, indicating that there was no massive futures margin call. Other factors were responsible for the recent BTC price fall.

One of the factors contributing to the BTC price cascade was the net outflows of more than half a billion dollars from the United States spot Bitcoin exchange-traded funds (ETFs) on May 1. This could be a knee-jerk reaction by investors to the BTC price performance. BlackRock’s iShares Bitcoin Trust (IBIT) had its worst day on record, with a nearly $40 million loss. Similar negative flows were observed across all ETF products. The Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest outflow at $191 million. Traders anticipate that the Bitcoin price will create more fear in the market before bottoming out for an upward continuation.

This significant reset in market sentiment can be seen in the Crypto Fear & Greed Index, which has returned to “neutral” territory at 43/100, its lowest level since September last year.

6 thoughts on “Bitcoin’s Bull Market Excess: Daily ETF Outflows Top $500M

  1. It’s disheartening to see the Crypto Fear & Greed Index hit its lowest level since last year.

  2. This article highlights the importance of considering various factors when analyzing Bitcoin’s price movements. It’s never just one thing! 📊🔄

  3. The market sentiment turning neutral is not a good sign. Brace yourself for more turbulence. 🌪️

  4. The unpredictability of the crypto market is what makes it exciting. Embrace the ups and downs, and stay positive!

  5. Despite the negative outflows, I remain optimistic about the future of Bitcoin. The journey to success is filled with challenges!

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