Throughout this week, all nine spot Bitcoin ETFs experienced continuous net outflows over five consecutive trading days. The primary reason behind this trend was the substantial outflows from the Grayscale Bitcoin ETF GBTC, which have reached a total of $14 billion since its launch in January 2024.

Bitcoin ETF Outflows Continue

On Friday, March 22, all Bitcoin spot ETFs collectively saw net outflows totaling $51.6 million. Notably, the Grayscale ETF GBTC recorded a significant single-day net outflow of $169 million, based on data from Farside Investors.

In contrast, the BlackRock ETF IBIT observed modest single-day net inflows of $18.89 million, marking two days of record lows. Similarly, the Fidelity ETF FBTC witnessed only $18.13 million in single-day net inflows. While GBTC outflows surged, BlackRock's inflows have helped mitigate the overall negative impact.

Amidst the ongoing net outflows this week, Bitcoin's price has faced downward pressure. Currently trading at a 3.77% decrease, BTC is priced at $64,051 with a market cap of $1.259 trillion. Analyst Michael van de Poppe notes that despite the price decline, BlackRock's consistent inflows into the Spot Bitcoin ETF indicate sustained institutional buying activity. This trend suggests that we are still in the midst of the market cycle.

BTC Supply Dynamics

As Bitcoin strives to recover from its longest dip in over five months, traders are focusing on holding BTC in cold storage, utilizing ETFs, and exploring borrowing options.

The trend of Bitcoin on exchanges continues to decline, with Coinbase Pro witnessing a withdrawal of 14.7k Bitcoin in the past 24 hours alone. Over the last month, a total of 57.4k Bitcoin has been withdrawn from the platform.

Analyst Poppe highlights the persistent bearish divergence for Bitcoin and predicts that we are nearing or have already reached a bottom, possibly leading to a period of sideways movement next week. The decreasing volatility is viewed as a positive signal for market stability and potential recovery.