Key conclusions
- US spot Bitcoin ETFs suffered their worst week in over a year, losing a net loss of as much as $1.72 billion in just five trading days.
- Cumulative net inflows into these financial instruments contracted by $5.4 billion in four weeks, confirming the sharp retreat of institutions.
- The fall in the value of the cryptocurrency below the $60,000 mark triggered massive liquidation of positions by investors, pushing the price to multi-month lows.
Rapid outflows from spot ETF funds and falling statistics
The numbers show the absolute capitulation of buyers. Four consecutive trading weeks ended with a negative balance, measured in billions of dollars. Cumulative net inflows into Bitcoin ETFs, which were $59.34 billion in mid-May, have shrunk sharply to $53.94 billion.
The scale of the current retreat of capital exceeds the effects of the market collapse in early October, when in one day the forced closing of leveraged traders’ positions generated a gigantic loss and the general market mood was completely destroyed.
Daily analysis shows that the market did not give investors any space to catch their breath. In the period from May 15 to June 5, only one day brought a positive financial result. On June 4, the funds recorded a minimum positive balance of $3.05 million. The remaining four trading days brought devastating losses. The biggest wave of selling was recorded on June 2, when investors pulled $519 million from ETF funds in one session.
Bitcoin price breaks through months of defense lines
The key line of defense, located at the $60,000 level, was finally broken. This level has halted declines on numerous occasions, protecting the market from, among other things, a deep collapse in early February, when weekly outflows amounted to just $318 million. However, Friday’s session saw bitcoin prices decline to the ceiling of $59,100. This is the lowest valuation of this cryptocurrency since the period immediately preceding the presidential election in the United States at the end of 2024.
Reaction of financial markets to capital outflows
The market situation was not improved by international tensions in the Middle East, including Iran’s direct missile attack on Israel, and uncertainty surrounding American political declarations regarding potential peace agreements. Breaking the barrier of $60,000 also put corporate entities in a difficult situation, which in recent years had purchased cryptocurrencies on the wave of market optimism. At current prices, strategic cryptocurrency purchases of many corporations generate huge balance sheet losses.
