Bitcoin ETF Outflows Raise Bear Market Fears

In Brief:

Bitcoin ETF outflows surpassed $500M in a single day, hitting a five-month high.

Analysts warn of potential price drops but expect a strong rebound later this year.

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Bitcoin’s recent price slump is fueling concerns of a bear market as ETF outflows accelerate. Last week alone, over $585 million exited Bitcoin ETFs, marking the worst outflow in months.

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Arthur Hayes, former CEO of BitMEX, warned that hedge funds unwinding ETF-related positions could trigger further declines, potentially dragging Bitcoin to $70,000. Meanwhile, failed efforts to establish state-level Bitcoin reserves have further dampened sentiment.

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Despite the sell-off, analysts expect Bitcoin to recover later in 2025, but the response of institutional investors—who have yet to experience a full-blown crypto bear market—remains uncertain.

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