Investors are hitting the brakes on Bitcoin, with the cryptocurrency experiencing its worst month since the FTX collapse and outflows hitting spot Bitcoin ETFs for the first time.

BlackRock's iShares Bitcoin Trust (IBIT), the poster child of the US Bitcoin ETF boom, finally saw its first day of withdrawals, with a net outflow of $36.9 million on May 1st. This marks a shift in sentiment after a period of heavy inflows.

Bloodbath in Bitcoin ETFs: The pain wasn't limited to iShares. Nine other Bitcoin ETFs witnessed a collective outflow of $526.8 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the pack at a staggering $191.1 million.

Bitcoin Price Feels the Chill: These outflows coincided with a 10.7% drop in Bitcoin's price over the past week, adding to the woes of investors. Interestingly, this comes after a month that saw Bitcoin plummet nearly 16%, its worst performance since November 2022.

Experts Weigh In: Analysts remain calm, pointing out that inflows and outflows are a normal part of an ETF's life cycle. James Seyffart, an ETF analyst at Bloomberg, emphasized that "these ETFs are operating smoothly across the board."

Gold Glitters While Bitcoin Falters: Adding another layer of intrigue, traditional gold ETFs like iShares Gold and SPDR Gold have seen outflows this year despite a 16% price increase for gold. This highlights the contrasting fortunes of these two asset classes in the current market climate.

Crypto Miners Feel the Pinch: The pain extended beyond Bitcoin itself. Stocks of crypto mining companies like Marathon Digital and Riot Platforms took a steeper tumble than Bitcoin, dropping by as much as 18%.

MicroStrategy Feels the Heat: Even MicroStrategy, a company known for its aggressive Bitcoin strategy, wasn't spared. Their stock price plunged 18% after reporting a first-quarter loss due to a writedown on their Bitcoin holdings.

Bitcoin's future remains uncertain. Will it rebound, or will these outflows mark a larger shift in investor sentiment? Only time will tell.