Bitcoin ETFs hit record nine-day outflow streak as investors withdraw $2.8B amid price drop

U.S. spot bitcoin ETFs have entered a prolonged phase of capital contraction, recording nine consecutive trading days of net outflows. This duration marks the longest continuous withdrawal streak since the products launched in January 2024. Data compiled by Woofun AI indicates that over this nine-session period, investors extracted approximately $2.8 billion from the funds, surpassing any previous instance of sustained selling pressure in the asset class history. The momentum has accelerated recently, with the sector shedding roughly $1.3 billion this week alone, extending a trend of three consecutive weeks of net negative flows. Monthly withdrawal figures now stand at approximately $2.3 billion, signaling a significant shift in investor sentiment.

The capital exodus has coincided with a sharp depreciation in the underlying asset price. Bitcoin has fallen from roughly $80,000 to $73,000 over the same timeframe, erasing substantial gains for holders.

However, the broader market backdrop suggests the outflows are driven by more than just price action. Since the start of the year, bitcoin has lagged significantly behind many of the market's best-performing assets. Specifically, AI-related equities, semiconductor stocks, and memory-chip manufacturers have continued to attract capital amid surging enthusiasm for AI infrastructure spending, creating a stark performance divergence.

Signs of institutional selling have emerged beneath the surface of these aggregate figures. BlackRock's iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow since its launch earlier this week. This event was driven largely by a sizeable dark pool transaction, the precise motivation behind which remains unknown to the public. Woofun AI notes that the scale of this specific redemption suggests some institutional investors may be reallocating capital away from bitcoin exposure and toward sectors that have recently generated stronger returns. Such moves often indicate a strategic rotation rather than a panic-driven liquidation.

Historically, sustained ETF outflows have often coincided with periods of market stress that later developed into local bottoms. Glassnode data shows that the 14-day moving average of ETF flows tends to trough near significant turning points in the market cycle. Similar patterns emerged during the correction in early February, when bitcoin briefly fell toward $60,000, and again in November. During that November period, ETF outflows accelerated around bitcoin's post-all-time-high pullback and a local low near $85,000, eventually preceding a recovery phase.

The current trajectory mirrors these historical precedents, suggesting that the current selling pressure may be nearing a cyclical inflection point. As capital continues to rotate into high-performing technology sectors, the pressure on Bitcoin ETFs remains acute. Woofun AI analysis suggests that while the immediate outlook reflects continued distribution, the depth of these outflows often signals the exhaustion of selling pressure, potentially setting the stage for a stabilization of the Bitcoin price structure in the coming sessions.