Bitcoin ETFs Bleed $1.7B in Fourth Weekly Outflow as Bullish Divergence Eyes $90K

Bitcoin News

Spot Bitcoin ETF products shed roughly $1.72 billion in net redemptions during the week ending June 5, extending a billion-dollar outflow streak to a fourth consecutive week dating back to mid-May. Selling pressure clustered across the first three trading days of June, when the funds lost $483.8 million, $519.1 million and $396.6 million respectively, before a brief $3.2 million inflow on Thursday gave way to another $325.7 million exit on Friday. The redemptions mark a sharp reversal from the heavy inflows that propped up the category earlier in the year, signaling cooling institutional conviction.

BlackRock's iShares Bitcoin Trust absorbed the bulk of the damage, accounting for about $1.34 billion of the weekly total, while Fidelity's Wise Origin fund lost $201.9 million and Grayscale's flagship trust shed $144.3 million. Analysts characterize the exodus as a macro-driven repricing of risk rather than a Bitcoin-specific concern, noting that large allocators tend to trim exposure through the deepest, most liquid vehicles first. Ether products mirrored the trend, recording a fourth straight week of losses with $173.05 million withdrawn, following $241.45 million the prior week, underscoring that the de-risking spans the broader crypto investment-product complex.

One widely cited research view argues the market has misdiagnosed the selloff, pinning weakness on sustained ETF redemptions rather than Michael Saylor's Strategy. Since the hotter-than-expected April U.S. inflation print landed on May 12, U.S.-listed Bitcoin ETFs have bled roughly $5.4 billion, even as Strategy quietly accumulated about $2 billion in BTC over the same stretch, making the corporate holder one of the few meaningful buyers. The conclusion: institutional outflows, not corporate-treasury selling, drove price below $60,000, reframing a narrative that had fixated on a single large holder's potential overhang.

Attention now turns to Wednesday's consumer price index release, which several desks see as the pivotal catalyst for whether the correction deepens or stabilizes. One model forecasts annual inflation accelerating to 4.3%, above the prior 3.8% reading and consensus near 4.2%. A print north of 4% would harden fears that the Federal Reserve keeps rates higher for longer, or even weighs an additional hike. Markets that entered the year pricing multiple cuts have now priced out easing entirely, a hawkish shift that has weighed on risk assets broadly and left crypto vulnerable to upside inflation surprises.

Despite the macro headwinds, momentum signals are flashing a rare constructive setup. Bitcoin's weekly relative strength index climbed back above 34 after slipping under the oversold 30 threshold, even as price fell from about $75,770 to near $63,000. That divergence, where price prints lower lows while momentum carves a higher low, is only the second such signal on the weekly chart on record. The first followed the FTX collapse in November 2022 and preceded a 715% advance from roughly $15,500 to a record near $126,200, putting a potential run toward $90,000 back on watchlists.

The bullish case draws additional support from where the divergence is forming. Bitcoin is holding near its 200-week simple moving average around $62,000, a level that historically marked bottom zones at the close of the 2015, 2018 and 2020 bear market cycles. One prominent analyst called the zone an ideal accumulation area but cautioned that bulls must reclaim the $64,000-$65,000 band for confirmation. A clean break could open a path toward $71,500-$73,000 and potentially a CME gap near $79,000, with the 50-week average near $91,755 standing as the next major dynamic resistance.

Technically, BTC trades near $64,024 after a 3.36% daily bounce, yet the picture remains fragile with the broader trend pointed down and the MACD still bearish. The daily RSI at 29.6 sits in deep oversold territory, aligning with the weekly divergence thesis and hinting that selling pressure is exhausting. Immediate resistance at $64,220 caps the rebound; a decisive close above it targets $66,334 then $68,191. On the downside, $62,933 is first support, with $61,056 and $59,159 below. A daily close beneath $59,159 would invalidate the recovery and reopen the sub-$60,000 zone for bears.