Capital Flow Withdrawn from Bitcoin ETF Reaches $1.21 Billion as Network Activity and Retail Investor Participation Surge
- Capital outflow from Bitcoin ETF products increased significantly, reaching $1.21 billion in just three trading days.
- BTC price breaks resistance level as Miners sell and valuation indicators sharply decline.
Bitcoin ETF has just recorded its largest withdrawal in nearly three months, with $1.21 billion withdrawn in just three recent trading sessions.
This is the first time since mid-March that the total net capital withdrawal from Bitcoin ETFs has exceeded the $1 billion mark.
The continuous capital withdrawal from institutional financial products clearly shows that investor confidence is noticeably declining.
This event occurs precisely when many valuation models are weakening and selling behavior from Miners increases, potentially adding selling pressure to an already fragile market.
Can the Network Platform Counterbalance the Negative Emotions from ETF?
Despite institutional withdrawal, on-chain data shows Bitcoin network activity is strongly recovering. The number of active addresses increased by 22.66% in the past week, while new addresses also increased by 11.94%.
Notably, zero-balance addresses surged by 53.41%, indicating wallet reactivation or capital flow circulation in the market. These indicators reflect renewed interest from small retail investors or movements between investor groups.
However, these behavioral signals will only be effective if they translate into stable buying pressure at higher prices – which is difficult to achieve when large capital is leaving ETFs.
Source: IntoTheBlock
Weakening BTC Valuation Indicators: Short-Term Peak Signal?
Additionally, long-term valuation signals have become gloomy. The NVT Golden Cross and Stock-to-Flow Ratio – two popular Bitcoin valuation analysis indicators – have sharply declined.
NVT Golden Cross dropped 53%, reflecting low trading volume compared to market capitalization. Simultaneously, the Stock-to-Flow Ratio also lost 50%, weakening confidence in Bitcoin's long-term scarcity model.
While these indicators do not immediately confirm a downward trend, they typically appear at local peaks when investor confidence becomes fragile.
Source: CryptoQuant
Smart Money Quietly Withdraws While Retail Investors Still Hold?
UTXO data shows 98.56% of outputs are still profitable – traditionally a positive long-term signal. However, the number of loss-making UTXOs increased by 25.46% in the same period, primarily affecting recently purchased investors.
This reflects that long-term holders remain steady, but short-term investors are beginning to face pressure. If these new buyers collectively cut losses, the market could experience deeper corrections.
Simultaneously, miner netflow total decreased by 7.52%, indicating Miners are increasingly transferring coins to exchanges rather than holding long-term – a movement typically signaling potential distribution.
While miner outflow does not necessarily lead to immediate selloff, this phenomenon increases resistance when the market attempts recovery. If it continues, it will reinforce short-term negative perspectives and weaken price upward potential.
Source: CryptoQuant
Can BTC Maintain Above $105K After Losing Resistance Support?
Currently, Bitcoin is trading around $105,537, up 0.56% for the day. However, this cryptocurrency has lost support at a critical resistance level.
The ATR indicator dropped to 2,602, suggesting price volatility is narrowing – typically a precursor to significant upcoming movement. The $105K–$106K area currently serves as a short-term pivot zone.
Therefore, if buyers do not quickly reclaim the $108K resistance, Bitcoin might retest deeper support around $103K or lower, especially if ETF capital outflow continues.
Source: TradingView
The $1.21 billion ETF capital withdrawal sequence indicates increasing institutional caution and reinforces negative signals appearing in valuation indicators and Miner actions.
Despite network activity remaining somewhat stable, it is very difficult to compensate for widespread market instability. If it fails to recover at key resistance levels and institutional confidence does not return, this sideways period could potentially transform into a major cryptocurrency market reversal trend.
