Bitcoin ETFs see massive sell-offs while BTC climbs to $71,000

• BTC spot ETF saw an outflow of over $200 million.
• Exchange netflow was dominated by positive flow.

Following the approvals of spot Bitcoin [BTC] ETFs in the US, Bitcoin has experienced sustained high volumes of flows. As the price of BTC appeared poised to reclaim its all-time high, the flow of ETFs peaked for the month.

Outflow dominates Bitcoin spot ETF volume

Analysis of the Bitcoin spot ETF Netflow on Coinglass revealed that it observed its highest flow since 27th March on 8th April. However, this flow marked a deviation from the trend observed in recent days.

Source: Coinglass

According to the chart, 8th April saw a significant outflow, the first of its kind since 20th March. The data showed an outflow of over $223 million worth of BTC on 8th April.

Interestingly, the last time such a volume of outflow occurred, Bitcoin was experiencing a price decline. Contrary to previous instances, this outflow occurred while Bitcoin rose, surpassing $71,000.

Bitcoin sees more exchange inflow

While the Bitcoin spot ETF experienced a significant outflow amidst the price rise, the general BTC netflow exhibited the opposite trend on 8th April. Analysis of the netflow indicated a dominance of inflows, suggesting that more traders were depositing their holdings into exchanges.

Source: CryptoQuant

However, it’s noteworthy that despite the dominance of inflows, the volume was not particularly significant. The total inflow recorded was approximately 555 BTC. At the moment, the inflow has increased to over 1,300 BTC.

Although the Bitcoin spot ETF and Exchange Netflow metrics seemingly moved in opposite directions, their underlying responses are similar.

A surge in spot ETF outflow indicates that shareholders are selling, potentially motivated by various factors, including profit-taking. Similarly, the prevalence of inflows in exchange netflow suggests that holders also sell to secure profits.

In both scenarios, the driving force is the rise in BTC price, a common factor influencing these actions.

BTC price rise takes a breather

On 8th April, the price of Bitcoin surged by approximately 1.73%, reaching around $71,313. While this wasn’t Bitcoin’s peak, analysis indicated it marked the third-highest price in its history.

Read Bitcoin (BTC) Price Prediction 2024-25

However, by the time of this writing, the price had experienced a decline. BTC was trading at around $70,400, reflecting a decrease of over 1%.

Although this decline represented a setback from the previous day’s rally, BTC remained within a bullish trend regardless.

Source: TradingView