Following a recent decline in Bitcoin prices, significant outflows from Bitcoin ETFs have been observed. Over the last five days, these outflows amounted to $1.17 billion, marking the largest outflow streak since April 2025.
Outflows from Bitcoin ETFs
According to Farside Investors, Bitcoin ETFs experienced record outflows of $1.17 billion over five trading days. On Monday, outflows were $125 million, which sharply increased to $523 million on Tuesday amid an 8.3% drop in Bitcoin prices, falling from mid-$120K to about $115K. This has become the longest period of ETF redemptions in recent months.
Market Overview and Expert Insights
Tuesday was particularly challenging, with Fidelity’s Bitcoin and Ether funds suffering over $400 million in withdrawals, while Grayscale's Bitcoin Trust lost roughly $116 million. In contrast, BlackRock's flagship iShares Bitcoin Trust recorded no outflows. Market sentiment changed, with the Crypto Fear & Greed Index dropping into the ‘Fear’ zone at a score of 44. Market veterans describe the recent ETF outflows as profit-taking after Bitcoin's peak in August.
Bitcoin Prospects for Q4
In a CNBC interview, crypto investor Anthony Pompliano stated that the current Bitcoin price of around $112-113K is 'pretty oversold.' He pointed out that a rebound may be underway heading into the fourth quarter, which historically shows growth. Pompliano noted that the third quarter has been the weakest since 2013, while the fourth quarter typically sees significant gains. However, other analysts caution about potential further declines due to broken support around $108K.
Despite recent outflows and price declines in Bitcoin, some experts point to a potential recovery in the fourth quarter. The market situation requires careful analysis and consideration of various factors influencing price dynamics.
