TLDR
- Bitcoin ETFs recorded about $296 million in net outflows from March 24-27.
- BlackRock’s IBIT led the weekly redemptions with the largest single-day withdrawal on Friday.
- US-based Bitcoin ETFs lost $225.5 million in a single day after starting the week with inflows of $167.2 million.
- Market analysts linked the outflows to a broader shift in risk aversion across global financial markets.
- Rising oil prices and fading expectations of interest rate cuts have increased pressure on risk assets.
Bitcoin ETFs recorded more than $290 million in weekly outflows as global markets turned defensive. Farside Investors data showed $296 million exited US spot products between March 24 and 27. The withdrawals followed early inflows, but sentiment reversed with… Geopolitical tensions Overall pressures intensified.
Bitcoin ETFs Record Weekly Outflows
Bitcoin ETFs recorded cumulative outflows of about $296 million during the week, according to Bloomberg. Persian investors. The data covered the period from March 24 to March 27 and showed flat recoveries across major funds. BlackRock’s IBIT led the drawdowns as investors reduced their exposure to risky assets.
IBIT recorded its largest single-day move on Friday with significant recoveries. US Bitcoin ETFs saw $225.5 million worth of exits on that day alone. However, it opened the week with $167.2 million in inflows on Monday before momentum shifted.
Market participants linked this reversal to broader risk aversion in financial markets. Josh Gilbert eToro “It is clear that risk aversion is the prevailing mood in the markets,” he said. He added that macro forces are exacerbating and putting pressure on digital assets.
Gilbert noted that Bitcoin fell to its lowest level in three weeks during the sell-off. He also highlighted the S&P 500’s fifth straight weekly decline, the longest since 2022. He said rising oil prices exacerbated inflation concerns and delayed expected interest rate cuts.
“Triple-digit oil is fueling inflation fears, pushing interest rate cut expectations even further,” he said. He explained that late cuts remove the catalyst risks that assets need to stabilize. As a result, traders reduce their positions in volatile markets.
Bitcoin price approaches $67,000 as volatility continues
Bitcoin traded near $68,000 on Sunday, according to CoinGecko data. The asset fell about 2% in 24 hours and about 6% in seven days. This decline came as the Iranian conflict entered its fourth week, which led to a rise in crude oil prices.
Peter Chung of Presto Labs attributed the outflows from ETFs to broad market weakness. “I think what drove this trend was the general trend of risk aversion,” he said. He added that the fading expectations of a ceasefire contributed to increasing pressure.
Chung also said that the weekly flow does not appear to be extreme compared to recent trends. Pratik Kala of Apollo Crypto shared a similar view on flows. He said the $290 million figure was “quite normal” and linked it to a rebalancing at the end of the quarter.
Kalla stated that ETF flows include trades based on hedge funds and not just directional positions. He said that these mechanisms limit the use of weekly data as structural signals. He added that Bitcoin’s relative strength against other assets remained supportive.
Bitcoin has held up better than stocks during the period of struggle, Gilbert said. However, he warned that the asset is still vulnerable to a widespread sell-off. He also noted that markets are increasingly pricing in its potential Federal Reserve High rate.
He said that these expectations contradict previous expectations of multiple cuts. He pointed to upcoming comments from Federal Reserve Chairman Jerome Powell as a pivotal point. Bitcoin traded at $67,574, up 1.4% in 24 hours, after briefly touching $65,000 on Monday.
