The price of Bitcoin faced ongoing challenges on Thursday, as U.S. spot Bitcoin exchange-traded funds (ETFs) experienced net outflows for the fifth day in a row.
Summary
Over the last five trading days, Bitcoin ETFs have seen a staggering $825 million in outflows.
Investor sentiment remains cautious ahead of a significant BTC options expiry on Deribit scheduled for Friday.
A bearish flag pattern has been identified on the daily chart, indicating potential further declines.
Data from SoSoValue indicates that twelve spot Bitcoin ETFs reported net outflows totaling $175.29 million on Christmas Eve, December 24. Leading these withdrawals was BlackRock’s IBIT fund, which saw an exit of $91.37 million.
Grayscale’s GBTC and Fidelity’s FBTC followed with smaller outflows of $24.6 million and $17.1 million respectively, while other ETFs collectively lost $42.1 million in assets. Notably, no BTC ETF attracted any inflows during this period.
The trend continued into Wednesday with withdrawals extending to five consecutive trading days; more than $825 million has exited these funds over this timeframe alone. For December thus far, nearly $804.33 million has been withdrawn and could surpass one billion if institutional interest continues to decline.
However, compared to November’s staggering outflow figure of $3.5 billion, December’s numbers remain significantly lower as of now.
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An analysis by market experts suggests that the underperformance of ETFs is likely linked to the holiday season surrounding Christmas and may improve once it concludes.
Caution among investors is also evident as they brace for approximately $23.6 billion worth of Bitcoin contracts set to expire on Deribit tomorrow—December 26—marking one of the largest expirations recorded by this exchange historically.
Additonally, analyst Ted Pillows pointed out that the U.S., contrasting sharply with Asia where buying activity persists for Bitcoin—the leading cryptocurrency—has emerged as its biggest seller recently.
“The majority of selling activity stems from tax-loss harvesting practices; this trend should conclude within a week,” remarked fellow market analyst Alek Carter in another post shared via X platform.”
Bitcoin Price Analysis
The value of Bitcoin (BTC) recently dropped from its local peak at $90,168 down to around $87,152 last Tuesday and has since fluctuated sideways between approximately$86K-$88K range levels . At present writing , it trades at about$87 ,750 , still nearly30 .4 % below its all-time high achieved back in October .
The technical outlook reveals that bitcoin remains beneath its50-day simple moving average(SMA), suggesting short-term bearish momentum persists . This assessment aligns with MACD indicators displaying diminishing buying pressure since MACD lines linger below signal lines.
Furthermore , bitcoin approaches breakdown points associated with bearish flag patterns observed across daily charts ; such formations often precede extended downward trends shortly thereafter.
Currently traders keep close watch over$85 ,200 level acting consistently strong demand zone throughout month ; breaching below could lead declines towardsNovember21 lows recorded at around$80 ,757.
Read more: Bitwise files for spot SUI ETF amid intensifying institutional competition.
Disclosure : This article does not constitute investment advice ; all content provided herein serves purely educational purposes only.