Bitcoin ETFs Experience Record 9-Day Outflow of $2.8 Billion as BTC Declines

Huo Xing Finance reports that on May 29, Bitcoin has stabilized near $73,500, down approximately 10% from its monthly high of $81,000. Despite improved market risk appetite, BTC has underperformed compared to other risk assets. Data shows that spot Bitcoin ETFs have experienced net outflows for nine consecutive trading days, setting a new record for the longest such streak, with cumulative net outflows totaling approximately $2.8 billion, indicating weakening new buying demand. Year-to-date, Bitcoin has lagged behind popular sectors such as AI, semiconductors, and memory chips, with some capital shifting toward these areas. Some institutional investors may be reducing their Bitcoin exposure and reallocating funds to assets with stronger recent performance. Glassnode believes current ETF inflows and spot demand are insufficient to support a rebound of BTC above $78,000. Meanwhile, CryptoQuant data shows that holdings by long-term holders (LTHs) have reached a record high of 15.8 million BTC. However, analysts suggest this increase stems partly from investors holding without trading rather than from new buying demand. Polymarket data indicates that the market generally expects BTC to close the month between $72,000 and $76,000. Additionally, altcoins are showing improved performance relative to BTC. Analysts note that the altcoin index excluding the top ten cryptocurrencies has risen above its 50-week exponential moving average; if this level holds through the week’s close, altcoins could still have approximately 20% upside potential relative to BTC.