Bitcoin is finding resistance above $60,000 levels. The selling pressure seems to be too high at those levels. Even, the BlackRock's iShares Bitcoin Trust ETF witnessed first outflow since May 1, 2024, a sign that people could be allocating money from Bitcoin to other assets. However, BTC ETF has been seeing strong inflows since launch in January this year and only twice, there has been an outflow.

At the time of publication on Saturday, BTC was trading at USD 59,300 with intraday high of $59429 and low of $58926. During the weekend, the trading activity is usually low and there is less of volatility.

Bitcoin (BTC) has seen a nearly 3% decline in value over the past week, with market sentiment shifting toward fear. Despite favorable economic signals and political endorsements, BTC continues to experience low demand, leading to significant outflows from U.S.-listed Bitcoin ETFs. Thursday marked the third consecutive day of net outflows, with $71 million exiting the market, signaling a retreat by professional investors. The broader crypto market has mirrored BTC's downturn, exacerbating losses across the board. This week also recorded the worst joint outflow day on record for Bitcoin ETFs, with BlackRock, Fidelity, and Grayscale all experiencing substantial withdrawals.

Bitcoin’s Value Declines Amidst Market Fear

BTC Experiences a 3% Weekly Drop: Bitcoin has depreciated by almost 3% over the past seven days, continuing its downward trend. Historically, BTC tends to experience further declines over the weekend, often dropping below its Friday closing price on Wall Street.

Fear Grips the Market: Market sentiment has soured, with BTC demand growth turning negative in recent weeks. The Crypto Fear and Greed Index, as reported by Alternative.me, has dipped to 34, indicating heightened fear among investors, further contributing to BTC’s ongoing struggle.

Significant Outflows From U.S.-Listed Bitcoin ETFs

Professional Funds Exiting the Market: According to SoSoValue data, U.S.-listed Bitcoin ETFs recorded $71 million in net outflows on Thursday, marking the third consecutive day of withdrawals. This trend reflects a significant exit of professional funds from the Bitcoin market, raising concerns about the future of BTC's price stability.

Worst Joint Outflow Day on Record: August 29th marked a historic low for Bitcoin ETFs, with total outflows reaching $563.7 million. Thursday alone saw joint net outflows of $71.8 million across 11 U.S.-based spot BTC ETFs, setting a new record for the worst outflow day in the market’s history.

BlackRock, Fidelity, and Grayscale Lead the Outflows

Fidelity Wise Origin Bitcoin Fund Tops the List: Fidelity's Wise Origin Bitcoin Fund (FBTC) led the outflows with $31.1 million, making it the hardest-hit ETF of the day. This significant withdrawal underscores the growing unease among institutional investors.

Grayscale Bitcoin Trust Follows Closely: Grayscale's Bitcoin Trust (GBTC) reported the second-largest outflows at $22.7 million, further indicating the widespread retreat from Bitcoin investments.

BlackRock’s ETF Ranks Third in Outflows: BlackRock's iShares Bitcoin Trust (IBIT) ranked third, reflecting its vulnerability despite being a dominant force in the Bitcoin ETF market. The fund saw notable outflows, contributing to the broader trend of professional funds exiting the BTC space.

Sideways Trading Amid Favorable Conditions

Limited Impact of Positive Indicators: Despite positive signals such as potential rate cuts and endorsements from Republican nominee Donald Trump, Bitcoin has largely traded sideways over the past week. These factors have not been sufficient to counterbalance the prevailing market fears and declining demand for BTC.

Broader Crypto Market Impact: BTC’s decline has had a cascading effect on the broader cryptocurrency market, dragging down other digital assets and exacerbating losses. The continued outflows from major Bitcoin ETFs signal that the market may be bracing for further declines in the near term.