Bitcoin is back to trading at levels seen in early February: near $60,000. But this time, the response from institutions is totally different.
Today, they are aggressively selling into the dip, ETF flows indicate, unlike in February, when selling slowed as prices dropped to near $60,000. That marks a fundamental shift in how institutions view bitcoin at this level.
The 11 U.S.-listed spot bitcoin ETFs saw net outflows of $1.72 billion last week. That's the largest single-week redemption in over a year, according to data source SoSoValue. Back in the first week of February, when BTC crashed to nearly $60,000, the ETFs bled just $318 million.
The bearish contrast doesn't end there.
Outflows have accelerated for four consecutive weeks, rising from $1 billion in the week ended May 15 to $1.26 billion, then $1.26 billion and $1.42 billion in the following two weeks, and most recently $1.72 billion.
In February it was different. The week BTC hit $60,000 saw $318 million leave. But the two weeks before that had seen $1.33 billion and $1.49 billion leave. In essence, as the price crashed, outflows slowed. Buyers showed up.
This time, the trend has reversed: As price fell, outflows accelerated. Week after week, faster redemptions and no institutional bid beneath them.
The pattern tells a bearish story and suggests the bulls may have tough time holding on to the $60,000 support. As of writing, bitcoin changed hands near $62,000.