Bitcoin ETFs See $550M Outflows in Two Days as Investor Sentiment Cools

Bitcoin has faced notable challenges as U.S. spot Bitcoin ETFs reported significant outflows, reflecting a shift in investor sentiment.

Over the past two days, these ETFs have seen over $550 million in net withdrawals, highlighting cooling enthusiasm for the leading cryptocurrency.

On Tuesday, net outflows reached approximately $122 million. Fidelity’s FBTC and Grayscale’s GBTC led the decline, losing $95 million and $36 million, respectively. BlackRock’s IBIT, one of the largest funds, reported no net change during this period. In contrast, Bitwise’s BITB and Grayscale’s BTC funds showed modest inflows, gaining $6.47 million and $4.84 million, respectively.

The outflows follow Bitcoin’s peak last week at $99,500, which coincided with extreme greed on the sentiment index. Since then, the index has dropped from 93% to 75%, indicating a decrease in bullish sentiment. This trend suggests investors are reassessing their positions, with some potentially rotating capital into altcoins as they gain momentum.

Although Bitcoin remains in a broader bull market, the ETF outflows underscore a cooling phase, with market participants showing caution despite the cryptocurrency’s strong long-term outlook.